Oil prices edged higher yesterday amid trade talk optimism, despite expectations of increased supply from Venezuela. The US allowed Chevron to resume operations in Venezuela, potentially boosting Venezuelan oil exports by over 200k b/d. Trade deals with Japan, the Philippines, and progress with the EU are helping to ease demand concerns in the oil market.

Gasoil cracks weakened, falling below US$25/bbl, but remain elevated due to tightness in the middle distillate market. European gasoil inventories fell to their lowest level since January 2024. US distillate stocks are at their lowest for this time of year since 1996, while Singapore saw a decrease in middle distillate stocks. Refinery margins are rising, supported by OPEC+ supply increases.

US natural gas prices settled higher after a three-day decline, with storage increasing by 23 bcf, below market expectations and the 5-year average. This publication by ING provides information for informational purposes only and does not constitute investment recommendation or advice.

Read more at Investing.com: Crude Oil: Trade Optimism Buoys Prices