Oil heads for sixth monthly drop and the worst performance since 2015
By Paul Burkhardt and Yongchang Chin
Despite the slight rise in West Texas Intermediate (WTI) crude for June on Friday (28), the commodity’s prices are heading for their sixth consecutive monthly retreat – the worst performance since 2015.
Investors see inflation in the US continuing to accelerate, reinforcing expectations that the Federal Reserve will be forced to keep raising rates and increasing the chances of a recession that reduces demand.
The International Monetary Fund (IMF) warned the European Central Bank to tread carefully on the path to further interest rate increases.
Falling refinery profit margins in Asia are already showing weakness in the most significant oil-importing region, but China’s recovery is starting to take hold.
Leading processor Sinopec said the country’s recovery would boost demand growth for refined petroleum products by more than 10% this year.
Oil suffered a sharp drop in April, rising sharply after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced a production cut but gave up those gains when the outlook deteriorated.
Supplies from Russia remained solid despite G7 sanctions, and China’s recovery was slower than some expected.
“The market seems a bit more concerned about the demand outlook ahead of the big meetings of the European Central Bank and the Fed next week, where rates will be raised again,” said Jens Pedersen, head of oil and commodities research at Danske Bank.
While it is “probably too early for another surprise production cut” from OPEC+, speculation may start to build in that direction before the group’s next meeting, he said.
Traders will be watching first-quarter balance sheets from major oil companies, including Exxon Mobil and Chevron, which may offer insights into their outlook for the global market.
Check out the oil prices on Friday (28):
- WTI oil for June was up 0.36% at US$75.03 around 8:10 am ET;
- Brent crude, meanwhile, was up 0.68%, at US$78.90.
With information from Bloomberg
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Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.02%
185,147.15
-0.02%
65,163.64
-0.42%
11,315.26
-1.14%
3,049,121
-0.29%
2,544.56
+0.40%
59,978.22
-0.31%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 185,147.15 | -0.02% | +21.85% | 185,188.13 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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