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2021-05-31 13:50:00

OIL PRICE: NOT ABOVE $70 ANEW

OIL PRICE: NOT ABOVE $70 ANEW

PLATTS - 31 May 2021 - Crude oil futures were higher in mid-morning trade in Asia May 31 as the market remained buoyed by expectations of strong oil demand from the US and Europe in summer as it awaited pricing cues from the OPEC+ meeting set for June 1.

At 11:12 am Singapore time (0312 GMT), the ICE Brent August contract was up 31 cents/b (0.45%) from the previous settle at $69.03/b, while the July NYMEX light sweet crude contract was 37 cents/b (0.56%) higher at $66.69/b.

High vaccination rates and easing mobility restrictions were painting a rosy picture for oil demand in the west, market analysts said.

"Oil prices climbed in early Asian trade on Monday, underpinned by the bright outlook for fuel demand growth in the next quarter," Avtar Sandu, senior commodities manager at Phillips Futures, said in a May 31 note.

According to Sandu, sentiment in the market has been boosted in particular by expectations of a surge in demand from the US. The Memorial Day weekend has unofficially kick-started the country's summer driving season, during which Americans are expected to unleash pent-up demand for road travel.

"With more drivers taking to the road and with some of the lowest gasoline stockpiles in almost 30 years, some see the US facing a supply squeeze on par with those seen when a hurricane knocks out oil refineries in Texas and Louisiana," he said.

However, concerns over mobility restrictions in Asia persisted, with sentiment also tempered by the prospect of a restoration of the Joint Comprehensive Plan of Action releasing outflows from Iran.

Russia 's envoy to the UN Mikhail Ulyanov said in a tweet May 30 that JCPOA negotiators are proceeding with the understanding that the current round of talks in Vienna is the final round, leading to speculation that a deal could soon be reached.

According to S&P Global Platts Analytics, a framework deal could see sanctions relief for Iran that could bring about 1.05 million b/d of Iranian crude into the market between May and December.

Market analysts have said the resurgence of the pandemic in Asia and the ongoing JCPOA negotiations will weigh on the minds of OPEC+ ministers during the coalition's June 1 meeting.

Delegates have nevertheless told S&P Global Platts that the coalition will press on with existing plans to relax output quotas by 700,000 b/d and 840,000 b/d in June and July respectively until more clarity emerges over the fate of the Iran nuclear deal, and on the impact of coronavirus containment measures in India, Japan, Taiwan and other infection hotspots.

"It is premature to decide to delay any further easing of the production cuts while no agreement has yet been signed on the lifting of Iranian sanctions," one delegate said on condition of anonymity. "Compared to the previous month, the outlook for the short term is brighter, although uncertainties continue to weigh on oil demand."

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Earlier:

OIL PRICE: NOT ABOVE $70 ANEW
2021, May, 28, 11:35:00
OIL PRICE: NOT ABOVE $70
Brent fell 9 cents, 0.1%, to $69.37 a barrel. WTI was at $66.90 a barrel, up 5 cents, or 0.1%.
OIL PRICE: NOT ABOVE $70 ANEW
2021, May, 27, 13:20:00
OIL PRICE: ABOVE $68 ANEW
Brent had shed 42 cents, or 0.6%, to $68.45 a barrel . WTI fell 35 cents, or 0.5%, to $65.86 a barrel.
OIL PRICE: NOT ABOVE $70 ANEW
2021, May, 26, 13:25:00
OIL PRICE: NOT ABOVE $69 YET
Brent rose 13 cents, or 0.2%, to $68.78 a barrel. WTI was down 5 cents, or 0.1%, at $66.02 a barrel.
OIL PRICE: NOT ABOVE $70 ANEW
2021, May, 26, 13:15:00
GLOBAL OIL DEFICIT 1 MBD
Global oil deficit is currently seen at around 1 million barrels per day, Russia's deputy prime minister Alexander Novak told reporters on Wednesday.
OIL PRICE: NOT ABOVE $70 ANEW
2021, May, 25, 12:40:00
OIL PRICE: NOT ABOVE $69 ANEW
Brent were down 1 cent at $68.45 a barrel. WTI were off 8 cents at $65.97 a barrel.
OIL PRICE: NOT ABOVE $70 ANEW
2021, May, 24, 13:05:00
OIL PRICE: NOT ABOVE $68 ANEW
Brent rose $1.25, or 1.9%, to $67.69. WTI was at $64.73 a barrel, up $1.15, or 1.8%.
OIL PRICE: NOT ABOVE $70 ANEW
2021, May, 21, 10:10:00
OIL PRICE: NEAR $65
Brent fell $1.55, or 2.3%, to settle at $65.11 a barrel. WTI crudeended $1.31, or 2.1%, lower at $62.05 a barrel.
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Tags: OIL, PRICE, BRENT, WTI