The rise in international oil prices has slowed, but it is not the European and American provider FX678 that has caused the bulls this time

On Friday (June 4), international oil prices stabilized, but their upward momentum slowed down because concerns about the uneven vaccination of the new crown vaccine globally have weakened the optimism about the recovery of fuel demand. The progress of vaccination in developed Asian countries and emerging economies around the world has been slow.

At 14:57 Beijing time, NYMEX crude oil futures rose 0.31% to 69.02 US dollars per barrel; ICE Brent crude oil futures rose 0.24% to 71.48 US dollars per barrel. However, the largest intraday declines were 0.70% and 0.81% respectively.

Vanda Insights energy analyst Vandana Hari said: “The upward momentum seems to have been exhausted, and the market is making way for long part of the profit-taking. But I don’t expect a sharp correction because the broader view of a strong rebound in the US economy and oil demand is deeply ingrained. “

Documents indicate that Saudi Arabia has increased its July official sales price (OSP) for most crude oil grades sold to Asia. The July OSP that it will sell to Asia’s flagship Arabian Light crude oil is set at a premium of US$1.90 per barrel over the Oman/Dubai average price, an increase of US$0.20 from June.

Commodity analysts at JPMorgan Chase stated in the report: “We still believe that the recovery in oil demand is mainly due to vaccination. The vaccination work in the United States and Europe is progressing smoothly.” But they also pointed out that the vaccination progress of developed Asian countries and global emerging economies has been slow. , Indicating that “there is no clear indication that the social distancing restrictions in this area can be lifted in the short term.”

More than 170 million people worldwide have been infected with the new crown virus, and the death toll due to the epidemic is close to 3.8 million. The new crown epidemic is the world‘s most serious health crisis in a century. It is now entering its second year and there is no sign of ending soon.

Oil prices rose earlier this week as the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to continue to restrict supply until July, and predict that demand will exceed supply in the second half of 2021. The slow progress of Iran’s nuclear talks also provides breathing space for the bulls. However, the slow progress of vaccination and high infection rates in countries such as Brazil and India are hitting the demand prospects of crude oil and oil products in high-growth markets.

At the same time, the U.S. Energy Information Administration (EIA) said on Thursday that U.S. crude oil inventories fell by 5.079 million barrels last week, far exceeding the expected drop of 2.533 million barrels; however, refined oil inventories rebounded before the holiday, despite the previous interruption of the Colonial Pipeline. Lead to a decline in inventory.

John Kilduff, a partner at Again Capital, said: “The panic buying that appears to have resulted from the Colonial Pipeline seems to have suppressed potential demand this week. People have enough gasoline in their tanks on Memorial Day.” (Traditionally, a three-day death. The Memorial Day long weekend is considered the beginning of the summer driving season in the United States.)

Hari said: “As important news and data on EIA, OPEC+ and Iran are digested this week, market participants may re-track the broader financial market sentiment. The next time point is the US 5 that will be announced later in the day. Monthly non-agricultural employment.”