Most active WTI futures $71.56 down $4.10 (5.42%).
Three from OilPrice, May 2:
10:30 am CDT
Crude oil prices were sent tumbling on Tuesday morning, with WTI falling below $73 per barrel, with Brent falling below $77 per barrel on jitters about the economy.
Oil futures are set to finish out the day on Tuesday at their lowest levels since the end of March as the market looks toward the Fed’s next policy decision.
WTI for June delivery (CLM23) fell $3.12 (-4.18%) on Tuesday by 10:45 a.m. to $72.56 per barrel. Brent crude oil for July 2023 delivery (BRNN23) fell $3.07 (-3.87%) per barrel to $76.24.
New data from China—the world’s top crude oil importer—on Monday revealed rather disappointing manufacturing activity data, which could play an important role in global oil demand. Add to this disappointing data the U.S. banking catastrophe and the fear of yet another Fed rate hike later this week, and the conditions are perfect for jitters and profit taking while the getting was good.
All of the gains seen from OPEC’s surprise production cut announcement that the group made at the end of March have now been completely dissolved. OPEC+ agreed at the end of March to cut another 1.6 million barrels per day from its production quotas beginning in May. The news sent shockwaves into the oil market, and prices rallied. WTI spiked above $83 per barrel on the news....
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The 10:00 am CDT headline was a bit more pointed:
Oil Prices Tank On Worrying Economic Data From China
Both of these are in the face of the 3:00 pm CDT headline:
OPEC’s April Production Falls: Survey
Yikes! Something wicked this way comes.
Related earlier today:
"Soft China PMI likely to flow through to uneven commodity demand"
