- Oil falls to a near three-month low, with demand concerns in focus
- July ’24 WTI lost 30c this morning to trade around $76.57/Bbl, with prompt-month WTI nearing a 4.5% weekly loss of $3.50
- Yesterday, the dollar index and the 10-year treasury yield hit their highest levels in over a week, while today, the USD trades lower, and equities are higher ahead of the Memorial Day weekend
- This came as minutes from the Fed’s latest meeting indicate policymakers are uncertain if current interest rates are sufficient to control persistent inflation
- Furthermore, OPEC+ delayed its output policy meeting to June 2 and announced it will be held online instead of in Vienna as initially planned
- US Gasoline Demand Lags Despite Positive Signs as Summer Driving Season Approaches (Argus)
- US gasoline demand is averaging 8.6 MMBbl/d, below pre-Covid norms and the 9 MMBbl/d average from January to late May in the past 10 years
- Refiners and vehicle data present a more optimistic outlook, suggesting that actual gasoline demand may be understated. Major refiners like Marathon Petroleum and Valero have reported steady or slightly increasing gasoline sales compared to last year
- US vehicle miles traveled (VMT) data shows a slight increase over last year, and AAA forecasts a 4% annual increase in travelers driving more than 50 miles for Memorial Day weekend
