Elizabeth Low and Alex Longley of Bloomberg report that oil is set for the biggest weekly drop since February as war risk fades. They write:
Oil headed for its biggest weekly decline since February on signs of easing geopolitical risks in the Middle East and weakening fuel markets.
Benchmark Brent traded below $84 a barrel for a weekly loss of more than 6%, while West Texas Intermediate was near $79. Hamas is studying a proposal for a temporary cease-fire with Israel and plans to send a delegation to Egypt to continue negotiations. Meanwhile, data from the US this week showed another slide in implied gasoline demand ahead of the key summer driving season. […]
The move lower in prices has fueled speculation that OPEC+ will prolong output cuts, with almost 90% of traders and analysts surveyed by Bloomberg predicting the group will extend curbs when it meets on June 1.
There is some potential for conflict at the gathering, after the United Arab Emirates’s main oil company said it increased production capacity, which would bolster the key member’s case to pump more crude.
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