Oil futures experienced a slight uptick in gains on Thursday as U.S. stockpiles unexpectedly decreased.Tickmill managing principal Joseph Dahrieh noted the 1.4M-barrel drop in U.S.crude inventories for the week ending May 3, providing support to the market after a period of price adjustments due to geopolitical factors. In addition to the decline in stockpiles, global demand optimism played a role in driving oil prices higher. China's customs data revealed a 5.5% year-over-year increase in oil imports in April, further bolstering market sentiment.
However, concerns remain regarding U.S.gasoline demand as the summer driving season approaches. Data showed a 915K barrel rise in domestic gasoline stocks, indicating a potential oversupply despite seemingly normal inventory levels. The front-month Nymex crude for June delivery closed at $79.26/bbl, up 0.3%, while front-month July Brent crude also saw a 0.3% increase to $83.88/bbl, marking the highest settlement values for both benchmarks since April 30. Goldman Sachs anticipates that OPEC+ will extend production cuts in June, with a focus on maintaining Saudi Arabia's 1M bbl/day reduction as part of a 2.2M bbl/day package to enhance the country's short-term oil revenues.
The investment bank highlighted unexpected inventory increases and high compliance with output cuts as factors supporting the decision to extend production cuts.
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