Overview: Opec Drops Output Cut Into Stabilizing Market

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Oil market fundamentals are behaving much as expected. Global crude inventories have risen to 2.5 year highs in March and will rise more in April and May. Product markets are sluggish, not uncommon in the period between North Hemisphere winter and summer. Diesel is softer than expected as a result of a mild winter, strong Russian product exports and China’s roaring fuel exports. Some normality shows in gasoline margins topping diesel ahead of peak summer demand. Also, balances have mostly absorbed the pandemic and Ukraine war. Uncertainty over the global economy remains, but oil demand is set for strong growth in the second half of 2023.

Opec-Plus Supply , Crude Oil, Oil Supply, Oil Demand, Oil Inventories, Refining
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