Asia stocks edge down after Wall Street falls; oil rises

HONG KONG, June 28 (Reuters) – Asian shares edge down in early trade on Tuesday with investors taking their cue from a volatile Wall Street session overnight, while oil prices climbed following last week’s rout.

Oil continued to rise with investors still weighing worries over an economic slowdown against concern over lost Russian supply amid sanctions related to the conflict in Ukraine.

“A seam of tight supply news bolstered the (oil) market,” analysts at Commonwealth Bank of Australia said in a research note. “Political unrest might curtail supply from a couple of second-tier producers, Ecuador and Libya. And then there’s the G7’s proposed price cap on Russian oil.”

Early in the Asian trading day, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.7%. The index is down 3.8% so far this month. US stock futures, the S&P 500 e-minis, were up 0.27%.

Australian shares were up 0.25%, while Japan’s Nikkei stock index .N225 rose 0.5%.

China’s blue-chip CSI300 index was 0.4% lower in early trade. Hong Kong’s Hang Seng index opened down 0.36%.

On Monday, US stocks ended a volatile trading session slightly lower with few catalysts to sway investor sentiment as they approach the half-way point of a year in which the equity markets have been slammed by heightened inflation worries and tightening Fed policy.

The major US stock indexes lost ground after oscillating earlier in the session, with weakness in interest rate sensitive megacaps such as Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGL) providing the heaviest drag.

The Dow Jones Industrial Average fell 0.2%, the S&P 500 lost 0.30% and the Nasdaq Composite dropped 0.72%.

Oil prices rose as the Group of Seven nations promised to tighten the squeeze on Russia’s finances with new sanctions that include a plan to cap the price of Russian oil.

US crude ticked up 0.99% to USD 110.65 a barrel. Brent crude rose to USD 116.22 per barrel.

Treasury yields climbed on Monday following capital and durable goods orders data and as pending home sales surprised to the upside from the previous month.

The yield on benchmark 10-year Treasury notes last reached 3.1847% on Tuesday, compared with its US close of 3.194% on Monday. The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 3.0974% compared with a US close of 3.123%.

Also, the US dollar edged lower versus major rivals as investors weighed expectations on inflation and interest rate hikes. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was down at 103.91.

Gold was slightly higher. Spot gold was traded at USD 1,824.28 per ounce.

(Reporting by Julie Zhu)

Oil climbs as major producer UAE says it has no spare capacity

MELBOURNE, June 28 (Reuters) – Oil prices rose about 1% in early Asian trade on Tuesday after the United Arab Emirates’ energy minister said the nation is producing near capacity, countering expectations that it could help boost supply in a tight market.

The UAE and Saudi Arabia have been seen as the only two countries in the Organization of the Petroleum Exporting Countries (OPEC) with spare capacity available to make up for lost Russian supply and weak output from other member nations.

U.S. West Texas Intermediate (WTI) crude futures climbed $1.07, or 1%, to $110.64 a barrel at 0028 GMT, extending a 1.8% gain in the previous session.

Brent crude futures jumped $1.08, or 0.9%, to $116.17 a barrel, adding to a 1.7% rise in the previous session.

“A seam of tight supply news bolstered the market. Two major producers, Saudi Arabia and the UAE, are said to be at, or very close to, near‑term capacity limits,” Commonwealth Bank commodities analyst Tobin Gorey said in a note.

UAE Energy Minister Suhail al-Mazrouei said on Monday UAE was producing near maximum capacity based on its quota of 3.168 million barrels per day (bpd) under the agreement with OPEC and its allies, together called OPEC+.

His comments confirmed remarks by French President Emmanuel Macron who told U.S. President Joe Biden on the sidelines of the Group of Seven nations meeting that the UAE was producing at maximum capacity and that Saudi Arabia could increase output by only 150,000 bpd, well below its nameplate spare capacity of around 2 million bpd.

Analysts also highlighted political unrest in Ecuador and Libya could also tighten supply further.

Libya’s National Oil Corp said on Monday it might have to declare force majeure in the Gulf of Sirte area within the next three days unless production and shipping resume at oil terminals there.

Ecuador’s Energy Ministry said the country could suspend oil output completely within the next two days amid anti-government protests. The former OPEC country was pumping around 520,000 barrels per day before the protests.

Those factors underscore shortages in the market, which have led to the market’s rebound this week, countering recession jitters that weighed on prices over the previous two weeks.

“More barrels must come to markets for oil prices to move meaningfully and steadily lower,” SPI Asset Management managing partner Stephen Innes said in a note.

(Reporting by Sonali Paul in Melbourne; Editing by Stephen Coates)

US stocks fall after recent big gains; oil, yields rise

NEW YORK, June 27 (Reuters) – US stocks ended a volatile trading session slightly lower on Monday after posting sharp gains the week before, while oil prices and Treasury yields rose.

Oil climbed following last week’s rout, as the Group of Seven nations promised to tighten the squeeze on Russia’s finances with new sanctions that include a plan to cap the price of Russian oil.

Investors have been hoping oil’s slide from three-month peaks hit earlier in June could ease overall inflation concerns and allow the US Federal Reserve to tighten policy less aggressively than initially feared.

Still, data on Monday showed new orders for US-made capital goods and shipments increased solidly in May, pointing to sustained strength in business spending on equipment in the second quarter.

Stocks moved between gains and losses during the session on Wall Street, with big growth shares leading the way down.

“It’s not shocking given we’re in a bear market that last week was a good week and this week is turning out to be a bad week,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, which has about USD 50 million in assets under management.

But given recent strong selloffs, “flat to down a little is progress,” he said.

The S&P 500 earlier this month confirmed it is in a bear market.

The Dow Jones Industrial Average fell 62.42 points, or 0.2%, to 31,438.26, the S&P 500 .SPX lost 11.63 points, or 0.30%, to 3,900.11 and the Nasdaq Composite dropped 83.07 points, or 0.72%, to 11,524.55.

The pan-European STOXX 600 index rose 0.52% and MSCI’s gauge of stocks across the globe gained 0.31%.

A further easing of COVID-19 restrictions in China helped to support global indexes.

Treasury yields climbed after the capital and durable goods orders surprised to the upside, but the sale of two- and five-year notes was weak.

The 10-year note rose 7 basis points to 3.194% and the two-year’s yield, which can herald rate expectations, gained 6.9 basis points to 3.126%.

Brent crude futures LCOc1 settled up USD 1.97, or 1.7%, at USD 115.09 a barrel, while US West Texas Intermediate crude CLc1 closed up USD 1.95, or 1.8%, at USD 109.57.

In foreign exchange, Russia’s rouble was volatile as Russia defaulted on its international bonds for the first time in more than a century, the White House and Moody’s credit agency said.

Also, the US dollar edged lower versus its major rivals as investors weighed expectations on inflation and rate hikes. The euro was helped by expectations that the European Central Bank will soon raise interest rates for the first time in more than a decade.

The dollar index fell 0.058%, with the euro up 0.23% to USD 1.0578.

Cryptocurrencies stumbled. Bitcoin last fell 0.59% to USD 20,905.04.

Spot gold dropped 0.2% to USD 1,822.89 an ounce.

(Reporting by Caroline Valetkevitch in New York; Additional reporting by Danilo Masoni in Milan, Herbert Lash in New York and Hannah Lang in Washington; Editing by Nick Zieminski and Matthew Lewis)

Wall Street ends down, pulled lower by growth stocks

NEW YORK, June 27 (Reuters) – US stocks closed lower on Monday, with few catalysts to sway investor sentiment as they approach the half-way point of a year in which the equity markets have been slammed by heightened inflation worries and tightening Fed policy.

The major US stock indexes lost ground after oscillating earlier in the session, with weakness in interest rate sensitive megacaps such as Amazon.com (AMZN), Microsoft Corp. (MSFT) and Alphabet Inc. (GOOGL) providing the heaviest drag.

“The reason for lack of direction this week and next week is investors are looking for what’s going to happen in the second quarter reporting period,” said Sam Stovall, chief investment strategist of CFRA Research in New York.

All three indexes are on course to notch two straight quarterly declines for the first time since 2015. They also appear set to post losses for June, which would mark three consecutive down months for the tech-heavy Nasdaq, its longest losing streak since 2015.

The S&P was on track to report its fifth worst year-to-date price decline since 1962 as of Friday, Stovall said.

“Every time the SPX rose by more than 20% in a year it fell by an average of 11% starting relatively early in the new year. And all years where the decline started in the first half got back to break even before the year was out.”

“No guarantee that’s going to happen this year, but the market could surprise us to the upside,” Stovall said.

Rising oil prices CLc1 helped put energy stocks .SPNY out front, with economically sensitive smallcaps and semiconductors and transports also outperforming the broader market.

Economic data surprised to the upside, with new orders for durable goods and pending home sales beating expectations and adding credence to US Federal Reserve Chairman Jerome Powell’s assertion that the economy is robust enough to withstand the central bank’s attempts to rein in decades-high inflation without sliding into recession.

The Dow Jones Industrial Average fell 62.42 points, or 0.2%, to 31,438.26, the S&P 500 lost 11.63 points, or 0.3%, to 3,900.11 and the Nasdaq Composite dropped 93.05 points, or 0.8%, to 11,514.57.

Among the 11 major sectors of the S&P 500, eight ended the session in negative territory, with consumer discretionary suffering the largest percentage loss. Energy stocks were the clear winners, gaining 2.8% on the day.

With several weeks to go until second-quarter reporting commences, 130 S&P 500 companies have pre-announced. Of those, 45 have been positive and 77 have been negative, resulting in a negative/positive ratio of 1.7 stronger than the first quarter but weaker than a year ago, according to Refinitiv data.

In extended trading, Robinhood Markets (HOOD) fell 4% after FTX’s Sam Bankman-Fried said his cryptocurrency exchange was in no active M&A conversations with the retail stock trading platform.

In the earlier trading session, Robinhood had jumped 14% after Bloomberg reported that FTX was exploring a deal.

During Monday’s session, Coinbase Global Inc. (COIN) dropped over 10% after Goldman Sachs downgraded that cryptocurrency exchange to “sell” from “buy”.

Advancing issues outnumbered declining ones on the NYSE by a 1.17-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored decliners.

The S&P 500 posted one new 52-week high and 29 new lows; the Nasdaq Composite recorded 24 new highs and 84 new lows.

Volume on US exchanges was 10.91 billion shares, compared with the 12.95 billion average over the last 20 trading days.

(Reporting by Stephen Culp; additional reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru, and by Noel Randewich in Oakland, Calif.; editing by Grant McCool)

Gold edges lower, fall capped by weaker dollar and recession fears

June 27 (Reuters) – Gold prices edged lower on Monday as higher rates weighed on bullion, while investors watched for any cues on policy moves at the European Central Bank’s forum in Portugal.

Spot gold fell 0.1% to USD 1,823.89 per ounce by 2:47 p.m. ET (1847 GMT). US gold futures GCv1 settled down 0.3% at USD 1,824.8.

“Gold softened as the bond market selloff resumed after weak demand from another Treasury auction,” Edward Moya, senior analyst with OANDA, said.

“In the short term, gold’s outlook is mixed as there is great uncertainty this summer, with chances of a more aggressive Federal Reserve on one side and recession risks on the other.”

The dollar also fell and a rise in US 10-Year Treasury yields made gold less attractive.

Gold is considered a hedge against inflation spikes and economic risks, yet higher interest rates raise the opportunity cost of holding the non-yielding asset.

Investors are watching for any signs of future policy moves as central bank heads, including ECB President Christine Lagarde and Fed Chair Jerome Powell, attend the annual forum in Sintra.

Meanwhile, analysts said a plan by Britain, the United States, Japan and Canada to ban imports of Russian gold to tighten sanctions on Moscow may only have a limited fundamental impact.

“Not much gold is being exported to the G-7 nations, primarily because of the lack of flights from Russia since the war started. The impact on gold price has thus far been negligible,” Stephen Innes, managing partner at SPI Asset Management, said.

Russia, the world’s third-largest gold producer, accounts for about 10% of global production.

Spot silver rose 0.1% to USD 21.13 per ounce, platinum was also up 0.1% to USD 908.00, while palladium fell 0.3% to USD 1,870.52.

(Reporting by Ashitha Shivaprasad and Seher Dareen in Bengaluru; Editing by Aditya Soni and Shounak Dasgupta)

UPDATE 2-Russia, rejecting default, tells investors to go to western financial agents

White House says Russia has defaulted on its external debt

Kremlin, finance ministry deny default, say Euroclear blocked payments

Russia to allow bondholders to convert roubles to forex and transfer abroad, bypassing National Settlement Depository

Bondholders should open a Russian bank account and refuse any claims on Russia

Adds details, quotes, background

June 27 (Reuters) – Russia rejected claims on Monday that is had defaulted on its external debt for the first time in more than a century, telling investors to go to Western financial agents for the cash which was sent but bondholders did not receive.

The White House said on Monday that Russia has defaulted on its international bonds for the first time since the Bolshevik revolution, as sweeping sanctions have effectively cut the country off from the global financial system. nL1N2YE06F

Until last week, Russia kept on paying on its Eurobonds in foreign currency as per issue conditions yet its dollar and euro coupon transfers made in May, ahead of a key U.S. waiver allowing for such transactions expired, did not reach investors.

“Statements of a default are absolutely unjustified,” Kremlin spokesperson Dmitry Peskov told a call with reporters on Monday, pointing to the May forex coupon payment.

“The fact that Euroclear withheld this money and did not bring it to the recipients is not our problem. There are absolutely no grounds to call such situation a default.”

Euroclear did not immediately respond to a request for comment.

On Monday, the finance ministry said that ‘actions of foreign financial intermediaries are beyond of the Russian finance ministry’s control,’ asking foreign bondholders to speak directly to those withholding the payments.

“The non-receipt of money by investors did not occur because of lack of payment but due to the third party actions and which is not directly spelled out as a default situation by issue documentation,” the ministry added.

As the U.S. waiver expired and the European Union sanctioned the National Settlement Depository (NSD), the Russian version of Euroclear and Clearstream western clearing houses, last week Moscow paid its next coupons due in forex in roubles. nL8N2YA2CS nR4N2X5008

President Vladimir Putin ordered last week that debt obligations would be considered fulfilled once a rouble payment equal to the forex amount due was made. Bondholders would need to open an account at a Russian bank to receive the payment.

Moscow would not block the payment’s conversion into forex and its transfer abroad but investors would need to say in writing they don’t have claims against Russia, the ministry has said. The banks are yet to be announced.nL1N2Y91SX

‘FINANCIAL NUCLEAR BOMB’

The Group of Seven major Western powers banned transactions with Russia’s central bank and froze its assets held in their jurisdictions, worth around $300 billion, after Russia launched what it called special military operation in Ukraine in February.

Some western politicians have called to seize the reserves frozen to rebuild Ukraine – the idea two high-ranked Russian financial sources said they believed was behind the announcement of default and which Moscow considers artificial. nL5N2X90YD

“By announcing a default, they can claim that sanctions work. Economically, financially assets could be confiscated legally,” one of the two sources said.

Peskov reiterated on Monday that reserves were blocked ‘unlawfully’ and any attempts to use them would ‘amount to outright theft.’

“I believe that a financial nuclear bomb was used against us, no country in the history of mankind has experienced such sanctions pressure as Russia is now,” Alexei Moiseev, Russian deputy finance minister, said last week.

(Reporting by Reuters; Editing by Frank Jack Daniel)

Oil rises $2/bbl after G7 vows new Russian sanctions

HOUSTON, June 27 (Reuters) – Oil rose USD 2 a barrel on Monday on the prospect of even tighter supplies loomed over the market as the Group of Seven nations promised to tighten the squeeze on Russian President Vladimir Putin’s war chest while actually lowering energy prices.

Brent crude futures settled USD 1.97, or 1.7% higher, at USD 115.09 a barrel, while US West Texas Intermediate crude closed up USD 1.95, or 1.8%, at USD 109.57 a barrel.

The group of wealthy nations vowed to stand with Ukraine “for as long as it takes”, proposing to cap the price of Russian oil as part of new sanctions to hit Moscow’s finances.

“I think if they were to implement a price cap on sale and purchase of Russian oil, it’s difficult for me to imagine how this is going to be implemented, especially when China and India have become Russia’s biggest customers,” said Houston-based oil consultant Andrew Lipow.

Commonwealth Bank of Australia analyst Vivek Dhar noted that there was “nothing stopping Russia from banning oil and refined product exports to G7 economies in response to a price cap, exacerbating shortage conditions in global oil and refined product markets.”

The international community should explore all options to alleviate tight energy supplies, including talks with producing nations like Iran and Venezuela, a French presidency official said. Both OPEC members’ oil exports have been curbed by US sanctions.

Both crude benchmarks closed down for the second week in a row on Friday as interest rate hikes in key economies strengthened the dollar and fanned fears of a global recession.

Recession fears and expectations of more interest rate hikes have caused volatility and risk aversion in the futures markets, with some energy investors and traders paring back, while spot crude prices have remained strong on high demand and a supply crunch.

For now, pressing supply worries outweighed growth concerns.

Members of the Organization of the Petroleum Exporting Countries and their allies including Russia, known as OPEC+, will probably stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said.

The producer group also trimmed its projected 2022 oil market surplus to 1 million barrels per day (bpd), down from 1.4 million bpd previously, a report seen by Reuters showed.

OPEC member Libya said on Monday it might have to halt exports in the Gulf of Sirte area within 72 hours amid unrest that has restricted production.

Adding to the supply woes, Ecuador also said it could suspend oil production completely within 48 hours amid anti-government protests in which at least six people have died.

Traders also waited for news on when market-moving US government oil inventory and other data would be published after it was not released last week due to server issues.

US crude oil, distillate and gasoline inventories likely fell last week, a preliminary Reuters poll showed on Monday.

(Additional reporting by Ron Bousso in London, Florence Tan in Singapore; Editing by Marguerita Choy, Louise Heavens and Tomasz Janowski)

Oil slides more than $1 as G7 debate Iran nuclear deal, Russia

SINGAPORE, June 27 (Reuters) – Oil prices slipped more than USD 1 a barrel on Monday as global economic concerns depressed the oil demand outlook while investors eyed the G7 meeting this week for possible moves on Russian oil exports and a revival of the Iran nuclear deal.

Brent crude futures slipped USD 1.42, or 1.3%, to USD 111.70 a barrel by 0010 GMT after rebounding 2.8% on Friday. US West Texas Intermediate crude was at USD 106.08 a barrel, down USD 1.54, or 1.4%, following a 3.2% gain in the previous session.

Both contracts posted their second weekly decline last week as interest rate hikes in key economies strengthened the dollar and fanned recession fear. However, oil prices remained well supported above USD 100 a barrel as crude and oil products supplies remained tight after Western sanctions kept Russian oil out of reach for some buyers.

Leaders of the Group of Seven (G7) rich nations are expected to discuss this week options for tackling rising energy prices and replacing Russian oil and gas imports, as well as further sanctions that do not exacerbate inflation.

These measures include a possible price cap on Russian crude and oil products exports aimed at curbing Russia’s revenue while reducing the damage to other economies.

“It’s unclear whether a price cap will achieve this outcome,” Commonwealth Bank of Australia analyst Vivek Dhar said in a note.

“There’s still nothing stopping Russia from banning oil and refined product exports to G7 economies in response to a price cap, exacerbating shortage conditions in global oil and refined product markets.”

G7 will also discuss the prospect of reviving the Iran nuclear talks after the European Union’s foreign policy chief met senior officials in Tehran to try to unblock the stalled negotiations, a French presidency official said on Sunday.

“This week, traders’ focus might be on a potential resumed Iran nuclear talks, which could lead to a revival of Iran’s oil exports,” CMC Markets analyst Tina Teng said.

In addition, some of the G7 leaders are pushing for an acknowledgement of the need for new financing for fossil energies investment, two sources told Reuters on Sunday, as European states scramble to diversify supplies.

(Reporting by Florence Tan; Editing by Christopher Cushing)

Wall Street mints big gains to end strong week

June 24 (Reuters) – Wall Street’s main indexes soared on Friday in a broad rally as signs of slowing economic growth and a recent pullback in commodity prices tempered expectations for the Federal Reserve’s rate-hike plans.

The S&P 500 rose over 3% for its biggest one-day percentage rise since May 2020. All 11 of the benchmark index’s sectors ended at least 1.5% higher.

Stocks rebounded this week as financial markets have been roiled over worries that rapid rate hikes by the Fed to rein in 40-year-high inflation could cause a recession.

Still, investors have been gauging when the market might hit its bottom after the benchmark S&P 500 earlier this month recorded a 20% drop from its January closing peak, confirming the common definition of a bear market.

“Some of the moves, the sellers just get exhausted so you don’t have as much capital moving out,” said Shawn Cruz, head trading strategist at TD Ameritrade.

“This might be a little bit of a relief rally,” Cruz said. “But I think I would not encourage anyone to start going in with both hands at the moment, because we have seen this repeatedly where these things can reverse themselves pretty quickly.”

The Dow Jones Industrial Average rose 823.32 points, or 2.68%, to 31,500.68, the S&P 500 gained 116.01 points, or 3.06%, to 3,911.74 and the Nasdaq Composite added 375.43 points, or 3.34%, to 11,607.62.

For the week, the S&P 500 rose 6.4%, the Dow added 5.4%, the Nasdaq gained 7.5%.

Volume surged towards the end of the session as the close of trading marked the completion of FTSE Russell’s reconstitution of its indexes that are tracked by trillions of dollars in investor funds.

US consumer sentiment fell to a record low in June, but Americans saw a marginal improvement in the outlook for inflation, a survey showed on Friday. Data on Thursday pointed to slowing US business activity in June.

Helping ease inflation fears was a sharp drop in commodity prices this week. The Refinitiv/CoreCommodity Index, which measures prices for energy, agriculture, metals and other commodities, fell to a roughly two-month low on Thursday after hitting a multi-year peak earlier in June.

Fed funds futures traders are now pricing for the benchmark rate to rise to about 3.5% by March, down from expectations last week that it would increase to around 4%.

“The expectation of future rate hikes coming down is part of the equation that makes today’s equity market so strong,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

Bank stocks rallied, with the S&P 500 banks index rising 3.7%, after the Fed’s annual “stress test” exercise showed that the lenders have enough capital to weather a severe economic downturn.

In company news, FedEx Corp. (FDX) shares jumped 7.2% after the parcel delivery company issued a stronger-than-expected full-year profit forecast.

Advancing issues outnumbered declining ones on the NYSE by a 4.66-to-1 ratio; on Nasdaq, a 2.15-to-1 ratio favored advancers.

The S&P 500 posted 1 new 52-week high and 29 new lows; the Nasdaq Composite recorded 34 new highs and 86 new lows.

More than 19 billion shares changed hands in US exchanges, compared with the 12.9 billion daily average over the last 20 sessions.

(Reporting by Lewis Krauskopf and Chuck Mikolajczak in New York, Sruthi Shankar and Anisha Sircar in Bengaluru; Editing by Sriraj Kalluvila and Grant McCool)

Oil settles up but posts weekly decline on recession fears

June 24 (Reuters) – Oil prices settled up by more than USD 3 a barrel on Friday, supported by tight supply, but they notched their second weekly decline on concern that rising interest rates could push the world economy into recession.

Brent crude settled up USD 3.07, or 2.8%, at USD 113.12 a barrel by 12:10 p.m. EDT (1610 GMT). US West Texas Intermediate (WTI) crude settled up USD 3.35, or 3.2%, at USD 107.62.

The US Federal Reserve “was talking very hawkish which was undermining the oil rally, but sentiment is changing a little especially on strong economic data,” said John Kilduff, partner at Again Capital LLC in New York.

On Thursday, Fed Chair Jerome Powell said the central bank’s focus on curbing inflation was “unconditional”, adding to fears about more interest rate hikes.

A survey on Friday showed US consumer sentiment hit a record low in June even as the outlook for inflation improved slightly.

Russia’s invasion of Ukraine exacerbated tight supplies this year just as demand has been recovering from the COVID pandemic, and oil came close to an all-time high of USD 147 reached in 2008.

Crude has gained support from the almost total shutdown of output in OPEC member Libya due to unrest. On Thursday, the Libyan oil minister said the National Oil Corporation chairman was withholding production data from him, raising doubts over figures issued last week.

Stephen Brennock of oil broker PVM said recession fears dominated sentiment, yet “the consensus remains that the oil market will see high demand and tight supply over the summer months, thereby limiting the downside.”

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, meet on June 30 and are expected to stick to a plan to only slightly accelerate hikes in oil production in July and August.

US energy firms this week added oil and natural gas rigs for a second week in a row in a record 23-month streak of increases, as high crude prices and prodding by the government prompted drillers to return to the wellpad, energy services firm Baker Hughes Co BKR.N said in its closely followed report on Friday.

The latest weekly US oil inventory figures, which will give a snapshot of supply tightness in the top consumer, have been delayed to next week due to technical issues.

(Additional reporting by Alex Lawler in London, Jeslyn Lerh in Singapore; Editing by Marguerita Choy, Jason Neely and David Gregorio)

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