Crude oil futures experienced a rebound on Friday from their three-month lows, although they are still heading towards a weekly loss. The drop in prices comes as the Memorial Day holiday marks the beginning of the summer driving season.

In morning trading, U.S. crude oil hit an intraday low of $76.15 per barrel, the lowest level since February 26. Meanwhile, the global benchmark, Brent, fell to $80.65 per barrel, the lowest level since February 8. Although both benchmarks turned positive later in the session, they are still on course for a weekly loss of approximately 3.2% and 2.5%, respectively.

At present, the West Texas Intermediate (WTI) July contract is priced at $77.46 per barrel, representing an increase of 61 cents or 0.79%. Year to date, U.S. oil has risen by 8.2%. The Brent July contract, on the other hand, currently stands at $81.84 per barrel, up 48 cents or 0.59%. Year to date, the global benchmark has climbed by 6.2%.

The RBOB Gasoline June contract sits at $2.48 per gallon, showing a rise of 0.47%. Since the start of the year, gasoline futures have surged by 18%. Meanwhile, the Natural Gas June contract is priced at $2.58 per thousand cubic feet, representing a decline of 2.9%. Year to date, gas prices have increased by 2.5%.

Analysts suggest that macroeconomic developments have failed to offer significant support to the oil market, which is grappling with its own set of challenges. Tamas Varga, an analyst at oil broker PVM, highlights that Russia overproduced in April, despite commitments to reduce production in line with other OPEC+ members.

Looking ahead, OPEC and its allies, led by Russia, will convene virtually on June 2 to review production policy. Currently, a coalition of OPEC+ members is voluntarily withholding 2.2 million barrels per day from the market in an attempt to bolster prices. Varga believes that the upcoming OPEC meeting will likely extend the current production ceiling. However, he asserts that this may not be enough to significantly improve market sentiment, given the nearly 6 million barrels per day of supply cushion in what appears to be an oversupplied market.

As the summer driving season commences, crude oil prices are grappling with volatility and the challenges posed by global economic conditions. The outcome of the OPEC meeting will be closely monitored by industry players and investors to gauge the potential impact on oil prices moving forward.