EBC Markets Briefing | Crude prices down ahead of OPEC+ meeting
Oil prices were on track to end the week down more than 1% on Friday as the market braced for a potential OPEC+ output hike. Trump's tariffs were to remain in effect after a federal appeals court temporarily reinstated them.
OPEC+ members are expected to decide on a July oil production hike when they meet on Saturday. Saudi Arabia urges some of them to ensure full compliance with agreed output targets.
As nuclear talks between Iran and the US wrapped up in Rome earlier this month, the public saw little sign of breakthrough. But a deal could be reached during the next round, sources familiar with the matter said.
US crude and fuel inventories all fell last week, while crude imports from Nigeria hit their highest level in nearly six years, the EIA said. But gasoline and distillate stocks both fell more than expected.
Goldman Sachs touted gold and oil as hedges against inflation in long-term portfolios, citing the appeal of bullion as a haven amid concerns over US credibility and crude's ability to protect against supply shocks.
The bank noted US bonds can hardly protect against equity downside and the rapid rise in borrowing costs as the assets now tend to move in lockstep rather than offsetting each other.
Brent crude is still supported by $62.82, with the pennant pattern signalling a moderate rally. A break above 50 SMA would expose the high at $66 hit earlier this month.
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Publication date:
2025-05-30 09:55:22 (GMT)
