- Oil heads for a sixth consecutive monthly decline amid resurgent demand concerns
- June ’23 WTI gained 55c this morning to trade around $75.27/Bbl
- Oil prices erased all of the OPEC-driven gains this week amid concerns about the economic outlook, and weakness in fuel demand
- The market awaits next week’s Fed meeting, with most expecting the Fed to deliver another rate hike
- IMF warned both the ECB and BOE to be cautious of financial stress that could arise as a result of rising rates further to battle inflation in light of the recent banking crisis (BBG)
- The IMF said that "a rapid tightening of monetary policy could lead to a sharp slowdown in economic activity and a rise in unemployment"
- The market also continues to monitor China's Labor Day holiday next week to see if it signals a strong economic recovery
- China's top refiner Sinopec expects the country's demand for refined oil products to grow by more than 10% in 2023 (BBG)
- Sinopec VP Huang Wensheng said that the rapid recovery in mobility since the lifting of COVID-19 restrictions has led to increased gasoline consumption
- He added that the government's economy-stabilizing policies had boosted demand from increased travel, infrastructure logistics, and agricultural activity
- China’s total crude demand is important as it is nearly half of the global demand growth in 2023, which is expected to grow anywhere from 1.0 to 2.1 MMBbl/d