Crude Posts Moderate Gains On Comments From Saudi Energy Minister

Crude prices jumped Tuesday on short covering after Saudi Arabian Energy Minister Prices Abdulaziz bin Salman said short sellers in the crude market "will be ouching like they did back in April," when OPEC+ unexpectedly cut crude production.

Crude has support on reduced Canadian crude output as wildfires in Alberta have halted at least 240,000 bpd and possibly 300,000 bpd of crude production from several Canadian crude producers.

The outlook for stronger U.S. fuel demand is bullish for crude prices.  AAA is forecasting that as many as 42.3 million Americans will travel 50 miles or more from home this Memorial Day weekend, up +7% y/y and thehighest for a Memorial Day weekend since 2005.  

Weakness in manufacturing activity in the U.S. and Europe is bearish for energy demand and crude prices. On the bearish side, India's Apr crude imports fell -8.3% y/y to 19.8 MMT as processors curbed operating rates amid a drop in petroleum-product exports.  In a bearish factor, Vortexa reported Monday that the amount of crude stored on tankers that have been stationary for at least a week rose +1.3% w/w to 91.15 million bbl in the week ended May 19.

GOTTA LOVE THE 5 YEAR COMPARISON SEASONAL GASOLINE CHART