Crude futures decline amid uncertain demand outlooks, profit-taking

摘要

Crude oil futures finished a second session lower May 6 as demand uncertainty and rising supply outlooks prompted profit-taking. June NYMEX WTI settled down 92 cents at $64.71/b, and July ICE Brent declined 87 cents to $68.09/b. "Worries over Indian oil demand are coinciding with OPEC+ gradually starting to bring supply back onto the market, along with growing Iranian supply," Warren Patterson, ING head of commodities strategy, and Wenyu Yao, ING senior commodities strategist, wrote in a daily note. "While right now it appears as though the market should be able to absorb this additional supply, the risk is that the demand picture deteriorates further, which would lead to a looser market balance." June NYMEX RBOB settled 3.76 cents lower at $2.1137/gal, and June ULSD was down 1.30 cents at $1.9895/gal. "The situation in India is still providing a major drag for oil prices," OANDA senior market analyst Edward Moya said in a note. "India saw the highest daily tally of new COVID cases, and while some believe the curve is starting to bend, the hospital situation remains bleak and likely leads to longer lockdowns."