financetom
Business
financetom
/
Business
/
Oil rises on US fuel demand expectations ahead of OPEC+ meeting
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Oil rises on US fuel demand expectations ahead of OPEC+ meeting
May 27, 2024 9:51 PM

TOKYO (Reuters) -Oil prices climbed in Asian trade on Tuesday, extending gains from the previous session, buoyed by expectations of strong fuel demand from the U.S. during the summer, ahead of an output policy decision from OPEC+ at a June 2 meeting.

July Brent crude rose 21 cents to $83.31 a barrel by 0329 GMT. The more-active August futures rose 21 cents to $83.09.

U.S. West Texas Intermediate (WTI) crude futures for July were at $78.90 a barrel, up $1.18, or 1.52%, from Friday's close, having traded through a U.S. holiday to mark Memorial Day without a settlement.

Oil prices rose over 1% on Monday in muted trade owing to public holidays in Britain and the United States after a downbeat week characterised by the outlook for U.S. interest rates in the face of sticky inflation.

Expectations of strong fuel demand with the start of the U.S. summer driving and vacation season provided price support, some analysts said.

Despite the general view that higher-for-longer interest rates could result in weak oil demand growth, "real-time mobility data indicates oil demand growth is still broadly healthy," said UBS analyst Giovanni Staunovo in a client note.

On the air travel front, U.S. seat numbers on domestic flights for May rose by 5% month on month and almost 6% year on year to slightly above 90 million, data from flight analytics firm OAG showed, surpassing 2019 levels.

International flight seat numbers for May rose by 11% year on year to around 14.2 million, with the levels also 8% higher than the same period in 2019, the data added.

Meanwhile, all eyes will also be on the upcoming online meeting of the OPEC+ on June 2, where traders and analysts are expecting production cuts to stay in place and buoy prices further.

"We expect oil prices to move higher in the coming days due to anticipated continued voluntary output cuts by oil producers and growing prospects for easing of U.S. monetary policy," said Satoru Yoshida, a commodity analyst with Rakuten Securities.

Yoshida added that the beginning of the U.S. driving season will also provide support.

Earlier, three sources from OPEC+ countries said an extension on voluntary output cuts of 2.2 million barrels per day into the second half of the year was likely.

A slight decline in the U.S. dollar also underpinned markets.

"Extending positive momentum from the last two sessions, crude oil prices seemed to have stabilised on Tuesday morning as a pullback in the US Dollar also aids the bullish outlook," said senior market analyst at Phillip Nova, Priyanka Sachdeva.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Intuitive Surgical Q3 Non-GAAP EPS, Revenue Increase; Shares Rise After Hours
Intuitive Surgical Q3 Non-GAAP EPS, Revenue Increase; Shares Rise After Hours
Oct 17, 2024
04:19 PM EDT, 10/17/2024 (MT Newswires) -- Intuitive Surgical ( ISRG ) reported Q3 non-GAAP earnings Thursday of $1.84 per diluted share, up from $1.46 a year earlier. Analysts polled by Capital IQ expected $1.64. Revenue for the quarter ended Sept. 30 was $2.04 billion, up from $1.74 billion a year earlier. Analysts surveyed by Capital IQ expected $2.01 billion....
Netflix Q3 Earnings, Revenue Rise; Q4 Outlook Set
Netflix Q3 Earnings, Revenue Rise; Q4 Outlook Set
Oct 17, 2024
04:17 PM EDT, 10/17/2024 (MT Newswires) -- Netflix ( NFLX ) reported Q3 earnings late Thursday of $5.40 per diluted share, up from $3.73 a year earlier. Analysts polled by Capital IQ expected $5.12. Revenue in the quarter ended Sept. 30 was $9.82 billion, up from $8.54 billion a year earlier. Analysts surveyed by Capital IQ expected $9.77 billion. The...
US says China making far more goods than it needs to overtake global markets
US says China making far more goods than it needs to overtake global markets
Oct 17, 2024
WASHINGTON (Reuters) - Data showed that China had a significant overcapacity and was making far more goods than it needs in order to overtake global markets, White House official Daleep Singh said on Thursday. Singh added China had amassed a growing amount of market power and was using it in way that gave it economic and geopolitical leverage. So that's...
Clarivate Insider Sold Shares Worth $420,000, According to a Recent SEC Filing
Clarivate Insider Sold Shares Worth $420,000, According to a Recent SEC Filing
Oct 17, 2024
04:23 PM EDT, 10/17/2024 (MT Newswires) -- Bar Veinstein, President, Academia & Government, on October 15, 2024, sold 60,000 shares in Clarivate ( CLVT ) for $420,000. Following the Form 4 filing with the SEC, Veinstein has control over a total of 916,583 shares of the company, with 916,583 shares held directly. SEC Filing: https://www.sec.gov/Archives/edgar/data/1764046/000176404624000136/xslF345X05/wk-form4_1729196349.xml ...
Copyright 2023-2026 - www.financetom.com All Rights Reserved