CRUDE WRAP: WTI (N3) SETTLES USD 1.64 HIGHER AT 71.74/BBL; BRENT (Q3) SETTLES USD 1.85 HIGHER AT 76.13/BBL

Analysis details (19:32)

The crude complex ended the week in the red, but firmer on the session after Congress passed the debt ceiling bill, averting a Government default, on top of Bloomberg reporting about China mulling stimulus for the property sector all ahead of the OPEC+ meeting on June 4th. On this, Reuters OPEC+ sources noted it is too soon to be sure of the outcome on Sunday, with another source adding the idea of formalising the voluntary cuts as an OPEC+ decision was being looked at, but desks are seemingly in consensus that the group will keep production steady but will stress flexibility. (Newsquawk preview available here). Note late Reuters source reports that OPEC+ is indeed debating an additional oil production cut among possible options. Earlier on, an Iraqi minister noted the group wants to maintain stability in the oil market and OPEC+ has proven it reads the market in the right way. Prices were also buoyed Friday with the risk on sentiment seen in wake of the erratic NFP report (headline very strong, u/e rose, wages ticked lower) printing highs of USD 72.17/bbl and USD 76.45/bbl, respectively. In bank commentary, JPMorgan noted world oil demand defies bearishness, likely growing 1.6mln BPD in Q1, and seen rising 2.4mln BPD in Q2. On OPEC, said April cuts should suffice to tighten oil markets in H2.

BAKER HUGHES: Today broke the three-week trend of a notable move in natgas following the Baker Hughes data, as nat gas rigs were unchanged at 137 in the w/e June 2nd. Meanwhile, oil rigs fell 15 to 555, the largest fall since September '21. 

02 Jun 2023 - 19:32- EnergyData- Source: Newsquawk