- Oil is trading lower, around $78, reversing some gains from yesterday
- There were reports of a successful ceasefire negotiation yesterday between Israel and Hamas; however, Israel has rejected the proposal and will continue with its planned operation in Rafah
- Reuters reported that some Asian refiners are considering reducing throughput in the coming months due to weak refining margins
- OPEC could extend supply cuts (Reuters)
- According to Reuters, three sources from OPEC countries participating in the voluntary cuts said that an extension through the end of the year if demand does not pick up
- OPEC will meet next on June 1 to decide the future of their supply policy, as the current supply cuts are set to last through June
- OPEC+ is currently curtailing output by 5.86 MMBbl/d, or 5.7% of global supply, in an attempt to keep the market balanced and prevent oversupply
- Energy Aspects said, "We think there's a good chance that OPEC+ will extend beyond June - but we aren't yet putting a firm view because we don't think they've actually got into the real period of discussion and decision-making,"
- It is also possible that only some of the cuts are kept in place while some barrels are returned to the market
