Oil is at three-month low
Oil traded at a three-month low amid signs of weakness in the market.
While Brent crude oil remained little changed around $81 per barrel, US crude oil remained below $77. It will take place on Memorial Day weekend in the US and is generally seen as the start of the peak driving period in the US. Therefore, investors will be watching to gauge the demand outlook.
Crude oil remains high this year, partly due to OPEC+ production cuts, but futures have eased since mid-April
The OPEC+ alliance is expected to meet on June 1 and generally extend current production cuts until the second half of 2024. The group is handling around 2 million barrels of oil per day this year.
“The upcoming OPEC+ meeting will eliminate supply uncertainty,” said Zhou Mi, an analyst at the Chaos Research Institute in Shanghai, adding that US demand is recovering and should receive support from the summer travel season.