July wti crude oil (Cln25) Today +0.67 ( +1.07%), and July RBOB gasoline (Rbn25) +0.0318 ( +1.56%).
Crude oil and gasoline prices are rising more today, in which raw are posting at a height of 2 weeks. Today’s recession in the dollar index (Dxy00) 6-6 is supporting profit in energy prices at the bottom of the week. Furthermore, it is expected that the US-China trade tension will decrease, US President Trump today emphasized raw prices after telephone talking with Chinese President Xi Jinping. Concerns about a global oil supply glut are limiting the profit in raw, after a report by Bloomberg on Wednesday that Saudi Arabia is open to an additional crude production increase in a bid to increase its share in its market.
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Low oil production in Canada is a rise for raw prices, as wildfires in Alberta, Canada have closed around 350,000 barrels (BPD) of raw production, which is about 7% of Canada’s total production.
There is a concern that a slowdown in the US economy will curb energy demand, after today’s news is negative to the prices of raw, weekly initial unemployment claims unexpectedly increased to 7-3/4 months high of 247,000, which showed a weak labor market compared to a decline of 235,000.
Bloomberg reported that Saudi Arabia has open to increase additional raw production in a bid to increase its market share. The report states that Saudi Arabia OPEC+ wants an increase in raw production by 411,000 BPD in August and potentially to capitalize on demand for peak summer in September.
According to the coward, a global oil supply indications are weighed at crude oil prices after increasing 170 million barrels in crude oil inventions in the last 100 days, which monitors the inventions.
The decline in crude oil held worldwide on tankers is a rise for oil prices. Vortexa said on Monday that the crude oil stored on the tankers which were stable for at least seven days, fell from 28% W/W to 72.07 million BBL in the week ended on 30 May.
Crude Oil is supported by President Trump’s comments last week, who said that Russian President Putin was “playing with fire” for his continuous attacks on Ukraine. CNN said on Tuesday that Mr. Trump may proceed with new sanctions on Russia in the coming days. In addition, Senator Graham said that he has votes in the Congress to pass a comprehensive sanction bill against Russia, which would slap 500% tariffs on any country that buys Russian energy products.
Crude oil prices have been reduced by American-Chinese trade stresses, which can slow down global economic activity and reduce crude demand. President Trump said today that Chinese President Xi Jinping is “very difficult and extremely difficult. Mr. Trump’s comments reduced optimism for the American-China trade deal in the near future.
Concern about a global oil glute is negative for raw prices. On Saturday, OPEC+ agreed to 411,000 BPD crude production hike for July. On 3 May, OPEC+ agreed to increase its raw production level to 411,000 BPD in June. Saudi Arabia has indicated that raw production can follow an additional similar size growth, which is seen as a strategy to reduce oil prices and punish OPEC+ members, such as Kazakhstan and Iraq, such as Kazakhstan and Iraq. OPEC+ 2 is promoting output to reversed a 2-year-long production cut, gradually restoring a total of 2.2 million BPD production. OPEC + first planned to restore production between January and the end of 2025, but now the production cuts will not be completely restored by September 2026. OPEC May Raw Production +200,000 BPD increased to 27.54 million BPD.
Doubt about an nuclear deal between Iran and the US supported crude oil prices. Iranian supreme leader Ali Khamenei recently said that he would not think the conversation with the US would be successful, and he urged the Trump administration to “stop talking nonsense.” President Trump recently said that Iran would face “something bad” if it does not quickly accept the US proposal on its nuclear program.
Crude has been supported by the US State Department’s approach to small global oil supply after slapping restrictions on an international network recently, which facilitated shipment of millions of barrel barrel oil of millions of barrel barrels for China. The State Department called the alleged Iranian front company called Siphar Energy Jahn Nama Pars, to use revenue from crude sales to fund ballistic missiles and drones, nuclear proliferation and Iran’s “terrorist proxy”, including “terrorist proxy” of Iran.
In an auxiliary factor for crude oil prices, the US on January 10 imposed new restrictions on Russia’s oil industry that could curb global oil supply. Bloomberg’s weekly vessel -tracking data showed Russian raw exports that -810,000 BPD W/W fell to 3.24 million BPD on May 25 a week.
Wednesday’s EIA report has revealed that (1) The invention of American crude oil was -7.0% from the 5 -year average till 30 May, (2) Gasoline invention was below -1.6% below the seasonal 5 -year average, and (3) distilled inventory 5 -year -year -year average -1.2%. Production of American crude oil in the week ended on 30 May 30.408 million BPD on 30th May +0.1% W/W, a week of 13.631 million BPD from 6 December.
Baker Hughes reported last Friday that the American oil leakage -4 fell from a 3–1/2 -year low to a low of 461 rigs in the week ended on May 30. The number of US oil rigs has fallen in the last two years from the 5 -year high of 627 rigs posted in December 2022.
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