⛽ Oil drops 3% to 2-month lows

Weak data from China and speculation over OPEC's next move push oil prices lower

Media reports surfaced pointing to misunderstanding within OPEC+ cartel. More precisely, misunderstandings between Saudi Arabia and Russia. Nevertheless, in spite of a current drop in crude prices, it is becoming more and more likely that OPEC+ will decide to keep output unchanged at a meeting next week with Russia opposing another output cut strongly.

Apart from that, Chinese PMIs for May released earlier today highlight that the economic rebound following post-pandemic reopening in the country has been slow. Manufacturing PMI even dropped deeper below 50 threshold, which signal recession within the sector.

Last but not least, US dollar is on the rise in spite of US debt ceiling deal being reached, what is putting pressure on commodities, including oil.

Brent (OIL) is dropping over 3% on the day and is trading at the lowest level in over 2 months! Source: xStation5