OIL: Crude Trading at Range Low After Hawkish FOMC Minutes

Crude futures are edging lower again today and at the low end of the monthly
$3.5/bbl range. The bearish pressure comes on the back of hawkish FOMC minutes
with concern that sticky inflation could result in higher for longer US
interest rates and limit future oil demand growth.

* EIA yesterday reported a build in US crude stocks counter to market

  expectations despite a rise in exports and increase in refinery runs due to
  the largest adjustment factor since November. US refinery utilisation rose
  more than expected again to the highest since mid Jan as the ramp up
  following maintenance continues.

* Russia has said it will present a plan to deal with its overproduction after

  exceeding pledged output for April. Earlier this month Iraq and Kazakhstan
  outlined plans for additional supply cuts to compensate for overproduction in
  Q1.
  * Brent JUL 24 down 0.3% at 81.63$/bbl
  * WTI JUL 24 down 0.5% at 77.21$/bbl
  * Gasoil JUN 24 down 0.6% at 742$/mt
  * Brent JUL 24-AUG 24 unchanged at 0.26$/bbl
  * Brent DEC 24-DEC 25 down 0.12$/bbl at 3.82$/bbl

* Brent prompt time spreads recovered slightly yesterday after falling closer

  towards parity over the last week. The widely held expectation for an
  extension of OPEC+ production cuts into H2 at the June 1 meeting provided
  some support.

* Gasoline cracks are edging higher after the weekly decline amid signs of a

  recovery in demand ahead of the start of the traditional peak travel season
  from this weekend. The latest EIA data showed an increase in key fuels demand
  to counter some of the recent weakness. Implied distillates demand however
  remains below seasonal levels seen in all recent years except for 2020.
  * US gasoline crack up 0.2$/bbl at 26.2$/bbl

* US ULSD crack down 0.1$/bbl at 25.18$/bbl