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Crude oil futures added modestly to gains from the previous session on Thursday that followed an unexpected decline in US inventories.
A 1.4 million barrel drop in US crude inventories in the week ending May 3Supported the market After a month Joseph Dahria, Director of Tickmill Management, said in press statements: “From price corrections as the market reacts to geopolitical developments.” Market monitoring.
Oil prices also received support from optimism in global demand after Chinese customs data showed the country's oil imports rose strongly 5.5% in April compared to the previous year.
However, concerns remain about US gasoline demand heading into the summer driving season, with data showing domestic gasoline inventories growing by 915,000 barrels.
“The normal or average gasoline supply level may not look bearish at first glance, but the fact that demand continues to deteriorate suggests there are more than adequate supplies in the heavy driving season,” Ritterbusch says, according to Dow Jones.
Front-month Nymex crude (CL1:COM) for June delivery has ended +0.3% To $79.26 per barrel, July Brent crude (CO1:COM) also closed +0.3% To $83.88 per barrel, the highest settlement value for both benchmarks since April 30.
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Goldman Sachs says it expects OPEC+ Production cuts will be extended in JuneThe group no longer announces a partial unwinding of voluntary cuts.
Goldman notes that inventories have recently surprised to the upside, and data on recent compliance with production cuts suggests that extending Saudi Arabia's 1 million bpd reduction as part of a 2.2 million bpd package would support the country's oil profits in the short term.
The bank still expects Brent crude to remain in the range of $75-90 per barrel in most scenarios, and expects prices to average $82 per barrel in 2025.