Oil closes the OPEC gap ahead of US inventory data | Forexlive

WTI crude oil closed at $75.67 on the Friday before OPEC+ announced a surprise production cut for May through year end. That led to a gap higher at the start of the month and a rally that eventually extended to $83.53.

It’s all gone now. WTI has essentially closed the gap, falling to $75.64

Technical sellers have been following the textbook with the sales into the gap.

On the fundamental side, the trouble at First Republic Bank is reinvigorating talk of a recession. Some recent economic indicators in the US have softened as well.

The drop in oil came despite a surprising drop in US inventories in the latest API data. The draws are coming despite more SPR sales and ahead of driving season.