Oil prices have remained rangebound this month, but falling inventories and a slowdown in U.S. inflation could provide the spark for a breakout, Oilprice.com said. 

Crude prices continue to trend within a very narrow range, confined within $82 and $84 per barrel over the course of May, and despite this week’s improving macroeconomic outlook Brent futures continue to be rangebound. That said, a slight US oil inventory drop and US inflation slowing down to a monthly rate of 0.3% might provide support for a breakout next week. 

IEA downgrades 2024 crude demand outlook. The International Energy Agency lowered its crude oil demand forecast for 2024 by 140,000 b/d to 1.06 million b/d, half of OPEC’s 2.25 million b/d call for this year, citing poor industrial activity and weaker diesel consumption. 

The much-anticipated OPEC+ ministerial meeting on June 1 will most probably be held online as tensions start to rise over compensation plans for Iraq and Kazakhstan, two countries that have failed to comply with their targets. 

Creating the second-largest producer in the Eagle Ford basin, US driller Crescent Energy agreed to buy rival SilverBow Resources for $2.1 billion, pre-empting the takeover of the latter company by private equity firm Kimmeridge Energy Management. 

Chevron to quit UK North Sea. US oil major Chevron announced it would exit its UK offshore business in the North Sea, starting the process of selling its remaining assets in the area, claiming that its decision to quit is not related to the UK windfall tax on energy profits and a worsening political environment. 

/Oilprice.com/