Earlier on oil:
- Private oil survey data shows large headline crude build vs a draw expected
- WTI crude oil futures settles at $68.09
- Barclays cuts its 2023 Brent forecast to US$87/bbl (from $92) & 2024 to US$89 (from $97)
- Re oil - Warren Buffett bought more Occidental shares
ANZ say that oil market's sentiment was hit by the PMI from China yesterday indicating the country's weak economic rebound. Concerns that the post-COVID bounce has petered out. Also overnight data showing US employment vacancies unexpectedly increased. Strong employment statistics typically signals an increase in oil demand from consumers.
Analysts at ANZ go on to say that there is speculation that OPEC will intervene to support prices as a result of the crude selloff. But ANZ are not anticipating the June 4 OPEC meeting will bring output cuts, but bullish rhetoric is likely to persist. OPEC will be watching to see how the existing production agreement and the expansion of Chinese demand will develop.
