Markets

A slow start on Monday due to a US holiday was followed by two days of sharp price drops in oil futures amid concerns about economic troubles.

A huge, unexpected drawdown of US crude inventories and mixed messages from OPEC+ leaders pushed prices higher over the week ending May 26 for benchmark crudes ICE Brent, NYMEX WTI, and DME Oman.

Day-on-day gains on Monday and Wednesday were large enough to make up for losses on the other three days of the week ending May 19.

Despite day-on-day increases on Monday and Tuesday, futures prices for benchmark crudes ICE Brent, NYMEX WTI, and DME Oman posted their fourth consecutive weekly drops though they were still higher than the multi-month lows hit during the previous week on May 3-4.

The bears were in charge throughout most of the week ending May 5 as poor economic data from the US and China and more interest-rate increases by the central banks of the US and Europe continued to drag down futures prices for ICE Brent, NYMEX WTI, and DME Oman.

Economic concerns and a further strengthening of the US dollar pulled down futures prices for ICE Brent, NYMEX WTI, and DME Oman over the week ending April 28.

A strengthening US dollar and concerns about potential interest-rate hikes helped to reignite bearish sentiment over the week ending April 21, and futures prices for ICE Brent, NYMEX WTI, and DME Oman dropped by more than 5% from the previous Friday.

After data showed slower-than-expected inflation in the US and China in March, OPEC warned of downside risks to demand in the upcoming summer, but the IEA projected that worldwide oil demand will reach a new record high this year.

The producers group unexpectedly announced a 1.16MM-b/d reduction in its collective output target on April 2, and oil prices soared in response.

A disruption to crude exports from Iraqi Kurdistan remained in focus throughout most of the week ending March 31, keeping traders' attention on the possibility of supply tightness.