Oil futures: Brent nears $77/b, on course for weekly gains
Quantum Commodity Intelligence – Crude oil futures Friday were edging higher, as markets steadied following the previous session's hammering that wiped out most of the week's erstwhile gains.
Jul23 ICE Brent futures were trading at $76.88/b (1845 GMT), compared to Thursday's settle of $76.26/b and having closed last Friday at $75.13/b. The more-liquid Aug23 was trading at $76.94/b, as the market tipped into a narrow contango.
At the same time, Jul23 NYMEX WTI was trading $72.66/b, versus Thursday's close of $71.83/b and last Friday's (19 May) $71.55/b.
Prices had come under pressure at the back end of the week after Russian Deputy Prime Minister Alexander Novak said he does not expect output changes from current levels when OPEC+ meets in Vienna on 4 June, negating Saudi's "watch out" broadside at short sellers.
"The Saudis were trying to talk up oil prices and dangle a threat of more production cuts, but it looks like Russia won't be on board for additional cuts," said Ed Moya, senior market analyst at brokerage Oanda.
However, Novak partially walked back the comments, later saying Russia and OPEC+ will decide on what is best for oil markets, adding that OPEC+ can act at the June meeting if necessary.
"Russia will participate in the discussion together with its partners in order to determine what is best for the market, while adhering to all previous decisions," Novak said.
Washington
Meanwhile, a deadlocked Washington over debt ceiling talks continues to roil markets, particularly after the Fitch ratings agency warned the US could lose its top credit rating.
While few expect a first-ever default, a further drawn-out debate leading to Washington running out of money is seen as damaging, with Treasury Secretary Janet Yellen saying the US may be unable to pay its bills as soon as 1 June.
But hopes were growing heading into the weekend Republican and White House negotiators were moving nearer to a deal that would raise the debt limit and reduce federal spending for two years.
Elsewhere, data from the German statistics office on Thursday showed a downward revision in GDP from zero to -0.3% for the first three months of the year, tilting Europe's largest economy into a technical recession.
On refined products, diesel stocks held in the ARA region fell for the first time in a month this week, as levels dropped more than 6% on reports of firm inland demand.
