Foreign exchange platform: Haitong Futures May 23 crude oil daily

Forex PlatformOutlook view

Oil prices rebounded for the second consecutive trading day without success. After the shock on Wednesday, oil prices closed at a low level, setting the lowest closing price of this round of correction. After repeated shocks, the lower support weakened, and the center of gravity of oil prices fell. The US Department of Energy announced that it will sell 1 million barrels of gasoline reserves to reduce gasoline prices in the US market. The intention of controlling oil prices before the US election is very obvious. Russia admitted that it overproduced in April due to technical reasons. Although it made a compensation plan, it still had a negative impact on market sentiment. The recent weak supply and demand performance of the crude oil market as a whole has led to the Brent crude oil premium to the lowest level since December last year. Investors are pessimistic about the outlook for oil prices.

Evening EIA released weekly data showing that crude oil inventories accumulated 1.825 million barrels, the data exceeded expectations, but better than the early morning API released 2.48 million barrels; gasoline inventories fell more than expected, because the overall data is better than the API inventory report, after the news released oil prices did not further weaken, but once rebounded, indicating that oil prices have technical rebound demand, but ultimately failed to reverse the situation.

Weaker oil prices may make OPEC + more cautious about reducing its holdings. Russian Deputy Prime Minister Novak said yesterday that he was unwilling to provide a forecast, saying that he would discuss the current situation of the oil market at the OPEC + June meeting. Industrial products such as copper and silver rose sharply in the evening, with high volatility increasing. Oil prices themselves weakened, confidence was low, and the positive signal was that the monthly difference fell sharply in absolute prices on Wednesday, but did not continue to decline. Oil prices may still be repeated. Pay attention to the rhythm and participate cautiously.