Crude markets turned bearish as reports emerged of OPEC+ eyeing another production hike.
A possible 411,000 barrels/day increase in July—likely led by Saudi Arabia—could tip the delicate balance between supply and demand.
Coupled with surprise builds in U.S. crude and fuel inventories and weaker gasoline demand, this paints a cautious picture for oil prices. Rising U.S.
Treasury yields and a tepid economic backdrop add further strain. Investors should be wary of continued volatility, especially as the June 1 OPEC+ meeting approaches.