Daily Commodities Highlights – May 29

🎯 Top Story

🇺🇸 EIA crude draw misses expectations as SPR releases accelerate

What happened: US crude inventories fell by 3.327 million barrels last week, smaller than the expected 4.143 million barrel draw. Strategic Petroleum Reserve stocks dropped by 9.063 million barrels.

Why it matters: The smaller-than-expected crude draw is a mildly bearish signal. But the rapid SPR drawdown – over 9 million barrels in a single week – shows the administration is pulling out all stops to manage prices.

Market impact: 🟡 Neutral to slightly bearish for crude. Supply remains ample in the near term.

🔥 Quick Takes

⛽ Energy

• 🇰🇷 South Korea to release private oil reserves → More supply is hitting the market. A bearish signal for prices.
• 🇳🇴 Norway pressures EU to lift Arctic oil and gas drilling ban → A long-term supply play. Not an immediate market mover.
• 🇯🇵 Japan April crude imports down 65.7 percent year-on-year → A massive drop. Demand destruction from high prices and war disruption is real.
• 🇪🇺 EU members plan no additional gas market intervention → A relief for energy firms. No new price caps or windfall taxes on the horizon.
• 🇰🇿 Kazakhstan: Kashagan field maintenance delayed to 2027 → Supply is staying offline longer. A bullish signal for oil.
• 🇷🇺 Three Russian "shadow fleet" tankers hit by drones off Turkey's Black Sea coast → Another strike on Russian energy infrastructure. Supply risks are rising.
• 🇪🇺 EU warns jet fuel market to tighten in coming weeks if Strait situation does not improve → Aviation fuel is the next potential pinch point. Refined product markets are under pressure.
• 🇺🇸 EIA crude draw of 3.327 million barrels vs 4.143 million expected; SPR draw of 9.063 million barrels → See Top Story.
• 🇪🇺 EU oil group: Gas storage could reach 80 percent by end of summer, securing winter supply → A positive signal for Europe. No gas shortage panic expected.

📊 Key Data Snapshot

💡 Technical Analysis

🥇 Gold (XAU/USD) – $4,550.90

Key takeaway: Gold's technical picture is overwhelmingly bullish. But fundamentals – a strong dollar and sticky inflation – are headwinds. Watch for a breakout above $4,561.

🛢️ WTI Crude Oil – $88.70

Key takeaway: WTI is caught in a consolidation range. The neutral technical stance reflects market indecision. A clear direction requires a break above 89.37orbelow

89.37orbelow87.71.

🔮 Looking Ahead

• 🇰🇷 South Korea private reserve release – how much?
• 🇷🇺 More drone attacks on Russian energy assets?
• 🇪🇺 Strait situation – any improvement?
• 🇺🇸 EIA data next week – will the crude draw accelerate?
• 🥇 Gold – will it break above $4,561?