May 24, 2024 (MLN): Oil traded near its lowest level in over three months as market showed signs of weakness ahead of the US summer driving season.
Brent crude traded near $81.38 per barrel. While West Texas Intermediate crude (WTI) was at $76.86.
Both benchmarks are set for a weekly loss.
The Memorial Day weekend is typically seen as the start of the peak driving period in the US and investors will be watching to gauge the demand outlook, as Bloomberg reported.
Crude is still higher this year in part due to OPEC+ output cuts, but futures have eased since mid-April.
The prompt spread for Brent was close to slipping into a bearish contango structure earlier this week, indicating ample supply, while money managers have trimmed their bets on rising prices.
The OPEC+ alliance meets on June 01 and is widely expected to prolong current output curbs into the second half of 2024.
The group has been keeping roughly 2 million barrels a day offline this year.
“The upcoming OPEC+ meeting will dispel uncertainty on supply,” said Zhou Mi, an analyst at the Chaos Research Institute in Shanghai, adding that US demand is recovering and should get a boost from the summer travel season.
