The news was fairly good yesterday but despite that, crude oil trade was lacklustre. Both the Saudis and the Kuwaitis suggested that production cuts should be ‘prolonged’ but Kuwait added that they could be reduced if 2H demand rises as expected. Finally it was reported that Iraqi output is down at the moment by around 140/- but that hasn’t affected markets yet either.
Certainly if the refinery run figure we saw this week continues demand for crude will rise but then the bears will say that product stocks will rise, let’s see what happens come the Driving Season which starts May 29th. Finally, whilst it’s not an oily matter there are elections in France at the weekend in which 11 candidates are whittled down to 2. As they stand at the moment, the polls who should not be trusted,give an order of Macron, Le Pen, Fillon and Melenchon, most of whom fill with despair but a Le Pen v Melenchon final would take some choosing.