Oil trending down

Oil falls as industry report points to rising U.S. inventories. Oil extended losses after industry report points to rising U.S. crude inventories, adding to bearish signals for the market. Brent fell to $82 a barrel for the third session and U.S. crude fell near $78. The American Petroleum Institute said crude inventories rose by 2.5 million barrels last week, according to sources. If confirmed by official data on Wednesday, it would be the first gain this month. Oil futures are still higher this year due to OPEC+ supply cuts, but some market measurements are starting to show weakness. “The fundamentals are weak,” said Gao Jian, an analyst at Shandong-based Qisheng Futures, adding that investors will be focused on the upcoming OPEC+ meeting that will “set the course” for the market in the second half. The producer group is scheduled to meet in early June and most market watchers surveyed by Bloomberg expect current supply restrictions to be lifted. The group is shutting down about 2 million barrels a day this year. Other metrics showing weakness include Brent DFL, a measure of Dated Brent futures, and Brent-Dubai EFS. Money managers also scaled back bets on rising prices.