OPEC+ is working on a complex deal to be agreed at its meeting on Sunday that will allow the group to extend some of its deep oil production cuts into 2025, three sources familiar with OPEC+ discussions said on Thursday.
Oil stocks fell by 4.2 million barrels — a greater decline than was expected.
Gasoline inventories increased by 2.0 million barrels, exceeding analyst estimates.
U.S. crude stocks fell while gasoline and distillate inventories rose in the week ending May 24, the Energy Information Administration said on Thursday.
OPEC+ members that are making 2.2 million barrels per day of voluntary oil output cuts are discussing extending them until the end of the year, three OPEC+ sources said ahead of the group's meeting on Sunday.
U.S. crude oil is down 3.2% in May, its worst performance since December. Oil prices have traded in a tight range over the past month as inventories have stabilized, though soft economic data points to further downside risks, according to Barclays.
Oil futures fell Thursday, feeling pressure as equities and other assets perceived as risky extended a selloff and traders awaited official data on U.S. inventories.
Saudi Arabia may announce a landmark secondary share offering in oil giant Aramco later on Thursday, pending final approval from Crown Prince Mohammed bin Salman, people with knowledge of the matter said.
Oil prices were down on Thursday as the markets wait on the latest U.S. crude oil stockpiles data while resilient U.S. economic activity pointed to borrowing costs staying higher for longer in a potential blow to demand.
Prolific oil and gas developer Double Eagle is exploring a sale of its latest Permian Basin-based producer in a deal that could be worth more than $6.5 billion, including debt, according to people familiar with the matter.
Members of the Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, will hold a much-anticipated ministerial meeting via videoconference on June 2 — and the oil market has already made the assumption that the group will extend its voluntary output cuts by three months, or to the end of the year.
Rising global oil inventories through April due to soft fuel demand may strengthen the case for OPEC+ producers to keep supply cuts in place when they meet on June 2, OPEC+ delegates and analysts say.