Oil Prices Plummet on Economic Concerns and Default Fears

Oil prices fell over 3.5% after China's PMI data for April came in lower than expected, shaking the prospect of Chinese demand lifting oil prices. Saudi Aramco is in talks with Sinopec and TotalEnergies for a $10 billion deal to develop the unconventional gas resources of the Jafurah gas field. LNG imports into key Asian consumption hubs have dropped to the lowest this year, coming in at 20.9 million tonnes in April, as subdued buying from China and Japan lowered JKM LNG prices to $11.5 per mmBtu. French oil major TotalEnergies agreed to purchase LNG from Emirati national oil company ADNOC worth $1.2 billion, securing liquefied gas supplies for the upcoming winter. California's energy regulator voted to approve new emission rules that would require all medium- and heavy-duty vehicles sold in the state to be zero-mission by 2036.