In this session, the "black gold" market loses power to push prices up as investors increase fears that oil demand may fall due to the prolonged Chinese-American trade war. .
The American Petroleum Institute (API) said on May 21 that the country’s crude oil reserves rose 2.4 million barrels to 480.2 million barrels last week, against analyst expectations for a reduction of 599,000 barrels. .
SaxoBank expert Ole Hansen said that the tension in the Middle East as well as the reduction of oil production by countries of the Petroleum Exporting Organization and its member countries, including Russia, also known as the OPEC + Group, helped. The market is tightened in recent trading sessions.
“However, the growing concern about the impact of the trade war on global economic growth as well as a strong dollar makes oil prices more expensive, putting pressure on oil prices today. "Mr. Hansen explained.
Meanwhile, the long-standing US-China trade conflict will negatively impact global economic growth, which may weaken demand for oil. The Organization for Economic Co-operation and Development (OECD) on May 21 lowered its forecast for global growth this year.
Specifically, Brent oil futures prices fell 17 cents to US $ 72.01 per barrel; WTI light sweet oil for July delivery also dropped 46 US cents, delivered at 62.67 USD / barrel.
Saudi Arabia on May 22 has pledged to maintain a balanced and sustainable oil market. However, analysts say the oil market is still tightened amid supply of OPEC mines and allies, led by Russia’s cuts and escalating political tension in the Middle East.
Bank of America Merrill Lynch said that, thanks to the agreement to cut supply, crude oil output of OPEC and allied countries had decreased by 2.3 million barrels per day in the period from 11/2018 - 4/2019. . As a result, Brent oil prices have climbed more than 30% since the beginning of the year.
Bank of America Morgan Stanley forecast Brent oil prices will range from $ 75-80 / barrel in the last 6 months of this year, driven by the basic supply and demand factors.
In addition to the basic principles in the market, oil traders are paying attention to tensions between the US and Iran.
