SlavkoSereda/iStock via Getty Images
Crude oil closed higher Monday on signs of improving demand in the U.S. and China, the world’s two top oil consumers.
Auto travel group AAA forecast this year’s Memorial Day travel activity will be the highest since 2005, estimating 43.8M travelers will head 50 miles or more from home over the holiday period, 4% more than last year.
The group projects 38.4M people will travel by car over Memorial Day weekend, the highest number for that holiday since AAA began tracking in 2000.
New data from China showed consumer prices rising for a third straight month in April, signaling a recovery in domestic demand in the top oil consumer.
Investors are awaiting Tuesday’s Producer Price Index and the more widely-watched Consumer Price Index data due on Wednesday for more clues on the extent and timing of potential interest rate cuts by the U.S. Federal Reserve.
On the supply side, investors are watching for potential oil supply disruptions in Western Canada due to wildfires the government has warned could be “catastrophic,” although rain is expected on Monday that could ease the threat.
Meanwhile, OPEC and the International Energy Agency will release their monthly oil market reports this week, offering their views on global demand and supply expectations for this year and next.
Front-month Nymex crude (CL1:COM) for June delivery finished +1.1% to $79.12/bbl, and front-month July Brent crude (CO1:COM) closed +0.7% to $83.36/bbl.
U.S. natural gas prices (NG1:COM) rose as domestic storage is expected to decline due to warmer weather, with front-month Nymex June natural gas ended +5.7% to $2.381/MMBtu, its highest settlement value since January 29.
ETFs: (NYSEARCA:USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI), (UNG), (BOIL), (KOLD), (UNL), (FCG)
OPEC+ risks losing market share to other oil producers if it does not start raising production, Capital Economics analysts say in a new report.
The group is set to decide whether to extend their voluntary production curbs at their upcoming meeting in June, but the firm thinks Brent’s drop below $84/bbl suggests the oil market is not as constrained as OPEC+ would like.
“Members may not feel now is the right time to start increasing production,” Capital Economics says, according to Dow Jones. “However, by not doing so the group runs the risk of ceding further market share as non-members scale up production.”
Source link
