- Oil gave up some of today's earlier gains to trade near yesterday's lows as of publication
- June ’24 WTI gained nearly 30c this morning to trade around $79.28/Bbl (8:30 AM)
- Yesterday, oil prices finished $3 lower to $79/Bbl after the EIA reported a larger-than-forecasted build of 7.3 MMBbl to 460.9 MMBbl, the highest level since June 2023
- Furthermore, the Fed decided to maintain interest rates, citing persistent inflation that could hinder economic growth and weigh on oil demand
- Additionally, there are signs of easing tensions in the Middle East – including the prospect of a defense pact between the US and Saudi Arabia
- Secretary of State Antony Blinken met with Saudi and Israeli leaders to discuss a deal involving Saudi recognition of Israel for a U.S. defense pact contingent on Israel ending the Gaza war and advancing Palestinian statehood
- UAE raises oil production capacity to 4.85 MMBbl/d ahead of OPEC meeting (Bloomberg)
- The UAE's national oil company, ADNOC, increased its production capacity to 4.85 MMBbl/d, up from 4.65 MMBbl/d at the end of last year
- This capacity boost gives the UAE leverage to negotiate for a higher production baseline at the upcoming OPEC+ meeting scheduled for June, where output levels for the second half of 2024 will be decided
- UAE, with over 1 MMBbl/d of idle supply, has previously been at odds with Saudi Arabia over production levels, reflecting differing stances within OPEC on managing supply to support global oil prices
