On Friday, oil prices slid down as data showed a higher-than-expected soar in US crude oil inventory, combined with the heightening tensions between the US and China.
By 01.06 GMT, Brent crude oil futures edged down by 1% or 36 cents to USD34.93/barrel and US WTI inched lower by 1.5% or 51 cents to USD33.20/barrel.
Nevertheless, both benchmarks are on the set for the fifth weekly increase, propped by supply cuts and demand recovery’s optimism in other countries.
On Thursday, the US Energy Information Administration (EIA) presented data showing that in the week ended May 22, the country’s crude oil and distillate stockpiles gained steeply, even as several states have halted travel restriction to avoid the coronavirus spread.
Analyst Christopher Louney of RBC Capital Market commented that fewer US motorists were out and travel in the Memorial Day weekend, resulting in less fuel demand than expected.
Going forward, the market will monitor the outcome of the Organization of Petroleum Exporting Countries and its non-member producer allies (OPEC+)’s meeting in the second week of June.
Russia is reported to still not have supported Saudi Arabia and some OPEC members’ plans to extend record production cuts beyond June.
