- WTI is trading lower, near $78.85, after strong inflation report
- The Producer Price Index rose 0.5% in April, compared to an estimate of 0.2% from Dow Jones
- CPI inflation numbers for April will be released tomorrow
- These indicators are closely watched as they help inform Federal Reserve interest rate decisions
- The Producer Price Index rose 0.5% in April, compared to an estimate of 0.2% from Dow Jones
- OPEC maintains demand outlook (Reuters)
- In its latest report, OPEC said it would be sticking to its demand assumptions, expecting strong demand growth in 2024, while switching its focus to projected demand for OPEC+ crudes
- The group expects global oil demand to rise by 2.25 MMBbl/d in 2024 and by 1.85 MMBbl/d in 2025, unchanged from last month
- This is the last report before OPEC meets next month to discuss their supply policy for the remainder of the year
- OPEC also said it would cease publication of global demand for OPEC crude and instead focus on the demand for OPEC+ crude, which includes Russian supply
- Asian refining margins remain weak (BBG)
- Refining margins in Asia are at the lowest level in seven months, turning crude buyers away from more expensive Middle Eastern grades and toward cheaper alternatives from the Americas
- Increases in the official selling price of Saudi Arabian crude has exacerbated issues for Asian refiners
- Saudi crude has largely been replaced by crude from the US and Brazil, which, even after adjusting for higher freight costs is cheaper than Middle Eastern barrels
