- Oil advances the three-day rally following Saudi warning, expected supply tightness
- June ’23 WTI gained nearly $1 this morning to trade around $74/Bbl
- Prices found support following Saudi Energy Minister’s hint at potential further cuts in the June OPEC+ meeting (BBG)
- NYMEX gasoline cracks strengthened, supported by the forthcoming summer driving season, and reported outages at U.S. refineries
- Equities weakened, while the dollar rose as markets await the outcome of debt ceiling talks before the Treasury's deadline on June 1
- API estimates from yesterday indicate significant draws in gasoline and crude reserves by 6.4 MMBbl and 6.8 MMBbl, respectively
- Additionally, U.S. Fed’s FOMC meeting minutes are due for release today, potentially offering insights into future rate hikes
- Western Canada’s wildfires recede; some oil and gas production resumes (BBG)
- Fires have dropped from 93 to 71, with those uncontrolled down from 26 to 20
- Chevron has resumed some operations in the Kaybob Duvernay shale area, while NuVista Energy has reinstated the majority of its halted 0.035 MMBbl/d production
- Due to wildfires and maintenance, Alberta's crude production is down by 0.24 - 0.28 MMBbl/d, potentially reaching a 0.48 MMBbl/d drop in May, according to ESAI consultancy