Written on: May 1, 2025
Thursday, May 1, 2025
Energy prices are extending its losses of over two percent as of this writing on Thursday morning. Losses came amid continued strength in the US dollar index and news of possibly another sharp increase in OPEC+ output next month, despite a rally in US stock market index futures. Market traders are looking ahead to the final US S&P Global Manufacturing PMI, the ISM Manufacturing Index, weekly jobless claims figures and to US construction spending data for further direction.
Reuters reported that Saudi officials told OPEC allies that the kingdom can endure a period of lower prices, reinforcing expectations that the group could agree to another sharp increase in oil production when they meet next week.
The Bank of Japan kept its rates steady at 0.5%, as widely expected. The Nikkei closed 1.13% higher. The Shanghai and Hong Kong Stock Exchanges were closed for Labor Day today, and so were the Frankfurt and Paris Stock Exchanges. In the UK, the final S&P Global Manufacturing PMI for April came in at 45.4, beating the 44.0 flash estimate. Nevertheless, the FTSE 100 was trading just below the unchanged mark as of this writing, down by 0.1%. US stock market index futures are trading higher this morning, seeing gains of between 0.8% (Dow futures) and 1.9% (Nasdaq futures). The US dollar index was up 0.4% as of this writing.
Crude oil and refined product futures lost ground yesterday amid losses in US equities and some strength in the US dollar index, despite bullish crude oil inventory data from the EIA and gains in European shares. Brent crude lost $1.13 to close at $63.12 a barrel, WTI crude dropped $2.21 lower to settle at $58.21 a barrel, gasoline futures fell 3.42 cents, settling at $2.0370 per gallon, heating oil tumbled 8.37 cents to $2.0367 per gallon and natural gas futures fell by 6.0 cents to settle at $3.326 per MMBTU.