While an upward risk movement promoted most risk assets yesterday, oil was left behind thanks to the discord of OPEC+. ICE Brent closed almost 2% lower in the day in the midst of concerns about aggressive increases in the offer by OPEC+. This occurs after Kazakhstan said that he cannot reduce oil production and plan to prioritize national interests on OPEC +’s obligations, they point out in Ing raw materials, EWA Manthey and Warren Patterson.
OPEC+ members are pressing for aggressive increases in the offer in June
“Kazajistan has been pumping well above its production target after an expansion project in the Tengiz field. This led to reports that other members of the OPEC+ are pressing for aggressive increases in the offer in June. Early this month, the OPEC+ surprised the market by increasing the offer by 411k b/d in May, more than the 138k b/d planned. This increased increase in A moment when demand estimates are being reduced in the midst of ongoing commercial tensions.
“However, the ICE Brent time differential remains well supported. It is negotiating in backwardation of about 1 $/BBL, which suggests a tension in the market in cash. The data of the Energy Information Administration of yesterday showed a modest increase in raw oil inventories, with stocks growing in 244k barrels during the last week.”
“This was significantly contrary to the decrease of 4.75m of barrels that the American Petroleum Institute reported the previous day. Changes in refining inventories of refined products were more constructive, with gasoline and distilled stock Gasoline stocks have fallen for eight consecutive weeks, leaving them at the lowest level since December.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
