Crude prices declined on growing concerns over global trade and indications that the tightness in oil supply is easing. Atlantic basin benchmark North Sea Dated dropped to a two-month low of $67.91/bl by 30 May, a fall of 34￠/bl from the previous week, having briefly climbed above $70/bl earlier this week. The decline for US marker WTI was more marked - it ended the week down by $1.32/bl at $56.59/bl - its lowest since 8 March. Concerns that the US-China trade dispute will escalate continued to weigh on prices, while growing trade tensions between the US and Mexico further stoked global trade fears. The drop in prices came despite a 300,000 bl decline in US crude stocks in the week to 24 May - although at 476.5mn bl, inventories remain close to their recent near two-year high, according to the EIA. The slight crude stockdraw was more than offset by a 2.2mn bl build in US gasoline inventories. North Sea crude remained in demand, although a recovery in the region’s July production could ease prices. Availabilities of the North Sea’s benchmark grades will recover in July as Ekofisk returns from maintenance. July’s Ekofisk loadings are scheduled to reach their highest since May 2017.
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