Crude Oil futures fell in Asian trade on April 28 as data from the American Petroleum Institute (API) showed a build in US crude inventories, and the OPEC+ Joint Ministerial Meeting Committee recommended that the OPEC+ decision to raise supply from May onwards be upheld. The API data surprised the market by showing a 4.32 million-barrel increase in US crude inventories in the week ending April 23. Due to an increase in refinery demand, market analysts anticipated a slight draw in Crude Oil inventory.
Market participants will be looking for confirmation of the inventory adjustments, as well as new pricing signals, in the more detailed US Energy Information Administration results, which will be released later on April 28. Meanwhile, delegates told S&P Global Platts that the OPEC+ JMMC, co-chaired by Saudi Arabia and Russia, supported the coalition’s earlier decision to gradually taper crude production cuts from May onwards.
The full OPEC+ meeting scheduled for April 28 has also been canceled, according to delegates, and ministers will reconvene online on June 1 to review their decision. The JMMC’s approval comes after the OPEC+ Joint Technical Committee lifted its estimate for 2021 crude demand growth from 5.6 million b/d to 6 million b/d on April 26, putting it in line with the 5.95 million b/d forecasted in the OPEC Oil market study on April 13.