- Likelihood of OPEC easing supply curbs in June keeps the bearish pressure intact.
- WTI looks to EIA crude inventors after API showed gasoline stocks build.
The offered tone around WTI (oil futures on NYMEX) picked up the pace in the European session, leaving the rates capped below the $ 72 mark, as investors turn cautious and refrain from placing any directional bets ahead of the meeting of the joint technical committee of OPEC and non-OPEC nations.
More so, markets eyeing the OPEC’s June meeting in Vienna, with sources saying that the OPEC could ease their oil output cuts and raise output. This headline also collaborated to the downside in oil amidst broad-based US dollar strength.
Further, Tuesday’s bearish API report, showing an increase in gasoline stockpiles also offered the support to the bears. However, the losses appear capped amid concerns over falling output in Venezuela while potential US sanctions on Iran also keep the prices somewhat buoyed.
Markets eagerly await fresh developments from the OPEC meeting due later today and the EIA crude stockpiles data for fresh near-term trading impetus.
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