Crude oil posts biggest weekly loss in a month as OPEC+ speculation outweighs tariff war
Crude oil fell Friday to end a second straight weekly loss, as key OPEC+...
Crude oil fell Friday to end a second straight weekly loss, as key OPEC+ members reportedly are discussing another production increase of ~400K bbl/day in June ahead of a video conference to set policy on Saturday, moved up from the expected May 5 meeting time.
OPEC+ stunned the oil market last month with a 411K bbl/day May production hike that was triple the amount originally planned. The cartel is apparently trying to discipline over-producing members such as Kazakhstan by driving down prices, and Bloomberg reported that it is considering doing the same again next month.
Goldman Sachs expects OPEC+ to announce a 410K bbl/day supply increase for June, citing modest compliance from Kazakhstan, lower-than-expected OECD inventories, and Saudi Arabia's ability to handle lower oil prices.
The bank also maintained its oil price forecast, expecting Brent crude to average $63/bbl and WTI crude at $59/bbl for the rest of 2025, with prices sliding further in 2026 to $58 for Brent and $55 for WTI, and that a global slowdown or a complete reversal of the 2.2M bbl/day of voluntary OPEC+ cuts could push Brent prices into the $40s next year.
Front-month Nymex crude (CL1:COM) for June delivery ended this week -7.5% to $58.29/bbl, its second lowest settlement value of the year, and front-month July Brent crude (CO1:COM) finished -6.8% to $61.29/bbl this week, a new 52-week low;on Friday, WTI fell 1.6% and Brent dropped 1.3%.
The S&P 500 has now erased its post–‘liberation day’ losses in their entirety
The U.S. stock market ended sharply higher Friday, with...
The U.S. stock market ended sharply higher Friday, with the S&P 500’s rally erasing its losses after President Donald Trump announced sweeping tariffs on April 2.
The S&P 500 climbed 82.53 points on Friday, or 1.5%, to close at 5,686.67.
The Dow Jones Industrial Average climbed 564.47 points, or 1.4%, to finish at 41,317.43.
The Nasdaq Composite jumped 266.99 points, or 1.5%, to end at 17,977.73
U.S. unemployment rate steady at 4.2% as economy adds more jobs than forecast
The labor market has been a bright spot, with a pace of job growth remaining healthy...
The labor market has been a bright spot, with a pace of job growth remaining healthy even as the economy has lost momentum in the last three months. Economists expect the job market to soften given all the uncertainty over tariffs, but, in general, they think April might be too soon to see a significant weakening. Which sectors show strength and weakness will matter more this month than usual.
U.S. economy adds 177,000 jobs in April, above 133,000 forecast. U.S. unemployment rate stays the same in April at 4.2%.
China waives US ethane tariffs to ease import costs
China has waived a 125% tariff on US ethane imports, easing costs for...
China has waived a 125% tariff on US ethane imports, easing costs for Chinese chemical companies and providing an outlet for US natural gas liquids. Nearly 50% of all US ethane exports head to China, making the waiver important for continued trade. It may also increase the nation's import volumes.
A Nabors Industries survey of 14 companies that run 43% of Lower 48 rigs revealed intentions to cut drilling activity by around 4% by year's end in response to falling crude oil prices and trade tensions. Deeper reductions may follow if West Texas Intermediate stays below the $60 mark for longer.
