Oil market fell to near three-month lows on concerns over demand outlook

International benchmarks for crude oil ended the trading session on Thursday, 23 May 2024 lower, marking the fourth consecutive falling session this week on lingering concerns over the demand outlook. 

Although business activities in the US picked up this month, manufacturing input costs have surged, suggesting higher goods inflation in the coming months. In a long stretch, oil traders translated this development to the likelihood of delay in rate cuts from the FED.

Investors are now focused on the 01 June OPEC+ meeting, where the group is expected to maintain current production cuts through at least September due to recent price weakness.

Brent futures decreased by 54 cents or 0.7% to settle at $81.36/barrel.

WTI fell by 70 cents or 0.9% to settle at $76.87/barrel.