Oil set for weekly drop after wiping almost all OPEC+ cut gains
BNN Bloomberg
Oil is set for its first weekly loss in a month after erasing most of the gains stemming from OPEC+’s surprise output cut.
Brent crude has wiped out almost all of the US$7 that it gained after the Organization of Petroleum Exporting Countries and its allies blindsided markets with a pledge to cut production. Global supplies are also showing signs of growth with Russia’s crude exports bouncing back above 3 million barrels a day last week, despite Moscow saying it had lowered output.
Meanwhile, in global fuel markets, gasoline and diesel are slowing at a time when they should be ramping up or peaking. Asian refiners are considering cutting volumes as margins have weakened recently, signaling that refineries didn’t manage to pass on higher costs to consumers.
“It appears that some of the excitement around the OPEC+ cuts has faded, amid light flows,” said Emily Ashford, Executive Director of Energy Research at Standard Chartered.
