Crude oil plunged for several days, yesterday to suspend the decline, but the bull did not emboldened
US WTI August crude oil futures electronic prices on Thursday (June 22) closed up $ 0.25, or 0.59%, to $ 42.78 / barrel. Oil prices rose on Thursday, before the day hit a 10-month low; but the market sentiment is still negative, despite the Organization of Petroleum Exporting Countries (OPEC) led the cut, but the global crude oil inventory surplus situation continues.
At the same time, ICE Brent August crude oil futures electronic trading prices closed up $ 0.50, or 1.12%, to $ 45.28 / barrel.
Dutch bank senior economist Hans van Cleef said oil prices fell too much, bullish oil prices began to buy investors. However, the agency Tyche Capital Advisors crude oil trader Tariq Zahir said, we feel that oil prices will remain low for a long time, the rebound should be the opportunity to sell.
Oil prices have fallen by about 20% since the end of February, erasing OPEC and other countries agreed to increase their production by 1.8 million barrels a day after the first half of this year. At the end of May OPEC and non-OPEC oil-producing countries reached an agreement to extend production to March 2018.
Saudi Arabia is looking for ways to boost oil prices; the ideal oil price for Saudi Aramco is 60 US dollars / barrel; at the same time, whether the cut-off agreement can produce the effect of doubt The
Iraqi oil chief Aruei said that oil prices should begin to recover at the end of July, before the end of 54-56 US dollars / barrel. But the global crude oil supply situation remains the same, due to OPEC member countries Libya and Nigeria to resume production, the two countries exempt from participation in production. Investors are still worried that the two countries increase production offset OPEC cut effect. The oil prices fell, tested OPEC "make every effort" to support oil prices determination. US crude oil production is still growing, some shale oil producers even in oil prices below 40 US dollars / barrel is still profitable.
According to Genscape data show that as of June 16 the week of Amsterdam - Rotterdam - Antwerp's oil stocks reached 6420 million barrels, reaching the highest level this year, higher than the lows in January about 24% higher.
Ash Burnst's oil and gas partner Michael Burns said the question is whether OPEC will cut production further or reconsider its macro strategy to tackle low oil prices.
Tropical Storm Cindy interrupted some of the oil production activities in the Gulf of Mexico, accounting for about 17 percent of US crude oil production and 5 percent of natural gas production, providing moderate support to the oil market. However, the storm is weakening and being downgraded to tropical low pressure.