Month End Profit Taking
In addition to an overbought technical condition from 6-days of noted gains (some forged in the face of negative OPEC+ supply news) and a slight negative vibe flowing from global equity markets, a measure of corrective action is underway. While extensive travel in China and other parts of Asia due to holiday might eventually be bullish for prices, demand hopes might have been tempered this morning by a lack of strong data from Chinese PMI readings.
While gasoline prices appear to be showing weakness early this morning, the overnight headlines should provide fundamental support. Russia might implement a 3-month gasoline export ban and that is joined by reports that weekly global fuel supplies declined and evidence that global gasoline demand increased last week.
Despite news that the cold hanging over Europe/Germany is likely to extend for most of May and production outages in the North Sea prices are showing signs of weakness early on. Prices are also not being lifted by surging Asian LNG prices and evidence that US LNG export flow increased by 1.7% on the week.
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