Oil steadies amid signs of softening market
Oil steadied as geopolitical tensions remain elevated and technicals provided critical support after a monthlong slump.
Azernews reports, citing foreign media that West Texas Intermediate settled above $78 a barrel after swinging through much of the session. Prices found support at crude’s 100-day moving average of about $78.15. Tension in the Middle East also lifted oil this afternoon as Israel’s war cabinet unanimously rejected a cease-fire proposal agreed to by Hamas. The state vowed to continue military operations in Rafah over the objections of most Arab and many European states.
Oil has been on a consistent downward trend since early April and key timespreads have slumped to the softest levels since February, a sign that physical markets are amply supplied. Adding to the bearish sentiment, Russian Deputy Prime Minister Alexander Novak said the OPEC+ grouping is analyzing the possibility of increasing oil output along with all other options before its next meeting in June.
Oil posted its biggest weekly drop since February last week. Prices remain higher year-to-date as OPEC+ production cuts have tightened the market. While the cartel is expected to keep supplies tight, the demand outlook is clouded, with diesel flashing signs of weakness.
Prices:
WTI for June delivery fell 0.1% to settle at $78.38 a barrel in
New York.
Brent for July settlement dropped 0.2% to $83.16 a barrel.
---
Follow us on Twitter @AzerNewsAz