Weekly Energy Commentary for 05/09/25
Crude oil pushes higher on trade hopes, declining US stockpiles
The crude oil market was strong enough to generate a “buy the news” reaction to the OPEC+ decision to raise production targets by a further 411,000 bpd for June after surviving a retest of the April 9 lows. The market arguably had become short-term oversold after falling about 10% over the prior six sessions. Hopes for deals to reduce trade tariffs also supported senitment. At the same time, we see the added supply and doubtful demand growth reducing the market’s upside potential and expanding the downside risk.
