WTI Oil Edges Up Despite Rising Supply and Slowing Economic Growth Outlook
West Texas Intermediate (WTI) crude oil closed higher on Friday, moving up despite the weight of rising supply and an uncertain outlook for the global economy amid U.S. President Donald Trump's global trade wars.
WTI crude oil for June delivery closed up US$0.23 to US$63.02 per barrel, while June Brent crude was last seen up US$0.25 to US$66.80.
OPEC+ is expected to again speed the return of 2.2-million barrels per day of voluntary cut to market in June. Originally planning to return the barrels in 18 monthly tranches, the group will add 411,000 bpd next month and is expected to announce another large increase for June when it meets on May 5.
The cartel's plan to add the barrels may be an attempt to punish OPEC+ member Kazakhstan, which has consistently over produced its quotas and has declined to adhere to the cartel's limits.
With the start of the summer driving season on the May Memorial Day holiday weekend just a month away, the International Monetary Fund this week cut its forecast for U.S. economic growth this year to 1.8% from its 3.3% January forecast, which will slow demand for oil.
The Bureau of Economic Analysis will release its initial estimate for first-quarter gross domestic product data on Wednesday, with the Federal Reserve Bank of Atlanta's GDPNow forecast now seeing a slump of 2.5% amid the trade wars.
Source: MT newswires
