Real time crude oil prices
On Monday, West Texas Intermediate crude for monthly delivery on the New York Mercantile Exchange fell 39 cents, or 0.6%, to $69.23 a barrel, after hitting an intraday high of $70 a barrel in early trading. According to FactSet, according to the most active contracts, the last trading price of West Texas Intermediate crude oil was $70 or higher in October 2018. Ice European futures exchange Brent crude fell 40 cents in August, or 0.6%, to $71.49 a barrel.
Edward Moya, senior market analyst at OANDA, said in a latest market report that the rise of West Texas Intermediate crude oil stopped overnight after testing $70 a barrel of water as China's imports fell to a five month low. At the same time, Moya said that both sides have made a lot of gestures in Iran's nuclear negotiations, which the energy market still yearns for. Before that, U.S. Secretary of state Antony Lincoln said it was not clear whether Iran was willing to do so, and it was necessary to return to compliance with the nuclear agreement.
"At some point this week, there will be a decisive moment in Iran's nuclear talks, which should help determine whether the bullish momentum will continue to push oil prices significantly higher," Moya said. If an agreement is reached, the United States may lift sanctions against Iran. Both sides have the motivation to reach an agreement, but if there is no breakthrough before Iran's presidential election on June 18, the price of Brent crude oil may easily rise to more than $75.00. "
Robbie Fraser, global research and Analysis Manager at Schneider Electric, said that although oil prices fell, Brent crude oil prices remained above the key point of $70, which continued to find "strong support". OPEC and its allies have rejected calls to speed up the cancellation of massive production cuts. At a meeting earlier this month, OPEC + agreed to keep its plan to gradually increase production until July.
"For most of the shale gas boom, U.S. production has been the driving force behind OPEC + to limit production cuts, rather than worrying about overheating," Fraser said. This time, however, the output response of the United States is limited even under higher oil prices, which means that OPEC + has limited pressure to increase production and price. "
Baker Hughes reported on Friday that there was no change in the number of active drilling platforms in the United States that week, which means that the rise in oil prices did not prompt U.S. producers to increase production. In addition, the U.S. energy information administration announced on Thursday that total oil production fell slightly by 200000 barrels to 10.8 million barrels a day in the week ending May 28.
"The demand side continues to drive optimism in the oil market as vaccine deployment and consumer confidence help create strong conditions for the summer travel season," Fraser said
"Data show that crude oil imports rose 2.3% in the first five months of 2021 year-on-year, but there were 9.69 million barrels a day in May, down 14.6% from 9.86 million barrels a day in April," said Warren Patterson, head of commodity strategy at ing.
