OPEC+ to Increase Oil Supply Impacting Asian Market

Oil prices in Asia have remained close to four-month lows due to recent developments in the global oil market. OPEC+, a coalition of oil-producing countries, has announced plans to increase oil supply later this year. This decision, combined with a rise in US crude and refined products stocks, has impacted oil prices significantly. Brent crude futures are currently trading slightly up at $77.53 a barrel, while US West Texas Intermediate crude futures have dipped to $73.23 a barrel. Both contracts experienced notable declines on Tuesday, reaching their lowest levels since early February.

The move by OPEC+ to boost oil supply starting in October, despite concerns about weakening demand growth, has put pressure on Brent crude prices. However, Saudi Arabia's energy minister has reassured the market that the group is prepared to adjust the supply cuts if demand falls short of expectations.

Analysts are anticipating a tightening of crude oil supply in the third quarter as OPEC+ begins to unwind supply cuts. The recent increase in US crude, gasoline, and distillate stocks, as reported by the American Petroleum Institute, has raised alarms in the market.

The API data revealed a significant build-up in crude stocks, contrary to analysts' predictions, leading to a bearish sentiment. Gasoline stocks also saw a substantial increase, double the expected amount. Market participants are eagerly awaiting the official stockpiles data from the US Energy Information Administration to assess fuel usage trends around the upcoming Memorial Day holiday.

The oil market in Asia is facing challenges as OPEC+ prepares to increase supply, impacting prices and market sentiment. The interplay between supply dynamics and demand trends will continue to influence oil prices in the coming months. Stay tuned for further updates on how these developments shape the global energy landscape.