Brent Crude Fails to Hold Gains

Brent Crude: futures fell to below $110 per barrel in volatile trading on Wednesday, following a 2% drop in the previous session, as investors balance challenges from muted economic growth prospects and expectations Venezuela could supply more oil to the market against hopes of demand recovery in China and supply constraints.

China appears to be gradually easing its lockdown of Shanghai, with the city set for the return of more normal life from June 1st. Also, Russia’s production fell by nearly 9% in April, 1.28 million bpd below its OPEC+ designated output quota as producers have started to shut in some wells as buyers in the West are increasingly shunning Russian crude amid the Ukraine war.

On the other hand, reports emerged that the US is allowing Chevron Corp to negotiate oil licenses with Venezuela’s national producer, temporarily lifting a US ban on such discussions.