EBC Markets Briefing | Crude on back foot; natural gas prices higher

Oil prices headed for a great weekly loss on Friday. The price of physical Brent oil cargoes will spike to $150 to $160 per barrel when inventories hit all-time lows in coming weeks, the executive said.

Sources said that the US and Iran have reached an agreement to extend their ceasefire and lift restrictions on shipping, though Trump has yet to approve it and Iranian state media said it had not been finalised.

Crude oil inventories decreased by 3.3 million barrels during the week ending 22 May, according to the EIA, while gasoline down 2.6 million barrels and distillates down 2.1 million barrels.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said that the low-to-mid $90s prices show there is still a "clear risk premium" attached to the conflict.

Saudi ​Arabia is likely to cut its OSPs for crude oil to Asia in ‌July for a second month, a survey showed, as spot premiums eased on sluggish demand despite supply disruptions.

US inflation continued to hit consumer wallets in April. Traders expect the Fed to stay on hold until at least late in 2026 and currently are pricing the likelihood that the next move will be a rate increase.

Brent crude turned bearish as every significant recovery attempt has been met with heavy selling pressure. A break below the key support at $91.39 would expose $90.67.

Asset recap

As of market close on 28 May, among EBC major products, Thermo Fisher Scientific shares led gains. The company unveiled next-generation innovations at ASMS 2026 to accelerate the path from drug discovery to new therapies.

US Surface Transportation Board temporarily paused the formal review process for Norfolk Southern's proposed merger with Union Pacific, adding to deal uncertainty.

US natural gas prices increased, with a combination of declining domestic output and an improving demand outlook helping the gas market break past prior downward pressure from seasonal maintenance.

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