Oil traded near a three-month low as the market flashed signs of weakness ahead of the start of the US summer driving season.
West Texas Intermediate was little changed below $77 a barrel and on track for a weekly loss. Brent futures closed lower near $81 on Thursday. The Memorial Day weekend is typically the start of the peak driving period in the US and investors will be watching to gauge the demand outlook.
Crude is still higher this year due to OPEC+ output cuts, but futures have eased since mid-April. Key market measures such as the prompt spread for Brent is close to slipping into a bearish contango structure, indicating ample supply.
The OPEC+ alliance meets on June 1 and is widely expected to prolong current output curbs into the second half of the year. – Bloomberg
