Today, oil prices edged lower after US inventory data showed lacklustre fuel demand in the world’s largest oil consumer while worsening US-China tensions weighed on global financial markets. Brent crude slipped 36 cents, or 1 per cent, to $34.93 a barrel by 0106 GMT and US West Texas Intermediate crude was at $33.20 a barrel, down 51 cents, or 1.5 per cent. Still, both contracts are set for a fifth weekly gain, helped by production cuts and optimism about demand recovery in other countries.
Looking ahead, traders will be focusing on the outcome of talks on output cuts between members of OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, in the second week of June.
Saudi Arabia and some OPEC members are considering extending record production cuts of 9.7 million barrels per day beyond June, but have yet to win support from Russia.