On Wednesday, oil prices show a drop against the backdrop of the OPEC + decision to leave the previous decision to increase production in May-July unchanged.
Thus, the cost of June Brent oil futures reported at $ 66.58 per barrel, having lost 0.24% of the closing price of the previous session. On Tuesday, these contracts rose 1.2% to $ 66.42 per barrel.
The price of futures for North Sea WTI crude oil for June showed $ 63.06 per barrel, sagging by 0.19% from the closing level of the previous trading day. On the eve of the price of these contracts jumped by 1.7% – up to $ 62.94 per barrel.
On Tuesday, the OPEC + meeting ended without unexpected surprises. The member countries of the international organization decided to adhere to the previous plan (adopted on April 1, 2021) for oil production. The next OPEC + meeting is scheduled for June 1st.
At the same time, investors are increasingly worried about the sharp increase in the number of new COVID-19 diseases in India, which could lead to a tangible decrease in oil demand.
On Wednesday, black gold market participants expect data on energy reserves in the United States.
So, on the eve of the American Petroleum Institute (API) reported that oil reserves in the United States last week increased by 4.3 million barrels. At the same time, the reserves of gasoline in the country decreased by 1.3 million barrels, and distillates – by 2.4 million barrels.
Experts predict that data from the US Department of Energy will show a drop in oil reserves in the United States by 200 thousand barrels. According to analysts’ assumptions, gasoline reserves have not changed, and distillates have decreased by 1.2 million barrels.
By the way, on Tuesday the black gold market was at the peak of euphoria. Prices for WTI crude oil rose to a weekly high after the statement of the President of the United States Joe Biden.
During his speech, Biden announced tremendous progress in combating the COVID-19 pandemic and vaccinating the American population. Thus, in the United States, 215 million people have already received antioxidant vaccinations, including 67% of elderly citizens.
Of course, today the issue of vaccination of the population is the main one for the black gold market, which directly depends on the demand for fuel for the movement of citizens.