Oil's three-day winning streak comes to an end as it plunges by 2% due to weak US demand; Brent experiences a 6% decline in May before the OPEC+ decision.

Both oil benchmarks are set to experience monthly losses, as Brent futures are expected to drop by more than six percent and WTI is on track for a decrease of over 4.5 % from the previous month.

May 31, 2024 - 15:12
May 31, 2024 - 15:13
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Oil's three-day winning streak comes to an end as it plunges by 2% due to weak US demand; Brent experiences a 6% decline in May before the OPEC+ decision.

Crude oil prices ended their three-day streak of gains and plummeted by almost 2% on Thursday, May 30, following a report from the US government showing low fuel demand and an unexpected increase in gasoline and distillate fuel inventories. The decrease in trend occurred before the decision on output policy by OPEC and its allies (OPEC+) was set for June 2.

Brent crude futures dropped $1.25, representing a 1.5 % decrease, reaching $82.35 per barrel. Futures for US West Texas Intermediate crude dropped by $1.15, equivalent to a decrease of 1.5%, reaching $78.08 per barrel. Regarding domestic prices, the latest trade of crude oil futures on the multi-commodity exchange (MCX) showed a decrease of 2.05 %, with the price per barrel at ₹6,488.

According to news agency Reuters, both Brent futures and WTI were poised to register monthly losses, with Brent on target to drop over six percent from last month, while WTI was set to decrease by more than 4.5%.

Selling across all commodities is putting pressure on oil prices. Nevertheless, prices could find some purchasing assistance at decreased levels. Pranav Mer, Vice President of EBG - Commodity & Currency Research at JM Financial Services, stated that prices are likely to receive back around 6,540, with resistance anticipated at 6,670/ 6,740.

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