- Oil trades slightly lower ahead of Chinese economic data
- May ’23 WTI lost 51c this morning to trade around $82/Bbl
- The market awaits China’s GDP data this week for indications of demand recovery
- IEA warned on Friday that the OPEC+ output cuts might drive up crude prices and worsen inflation
- The supply cuts that begin in May could worsen the oil supply deficit and hurt the economic recovery, added the agency
- The U.S. Dollar strengthened relative to its recent lows, making oil expensive for holders of other currencies
- Global diesel market signals economic slowdown (BBG)
- Diesel demand, an indicator of industrial activity and consumer spending, is weakening in major economies, indicating an economic slowdown
- China's trucking activity has decreased, and diesel's premium to crude futures has hit a one-year low in Europe
- U.S. diesel demand is expected to drop by 2% in 2023, the biggest since 2016 (excluding the 2020 pandemic)
- Trucking, which consumes a large portion of diesel, is facing a demand pullback due to declining factory output, home construction, and changing consumer spending patterns in the U.S., while China's manufacturing activity eased unexpectedly in March