Crude oil prices decline on Wednesday morning for the second day in a row and then started to rise slightly, after reaching the highest level since early April, and the oil market is currently going through downward fluctuations, as a result of many frustrations starting with the banking crisis in state banks the United States since March, in addition to the unclear vision on the US economy.
Brent crude is currently around $ 75.05 a barrel, while WTI is around $ 70.97. The oil market has suffered from the changing factors, which ultimately led to the frustration of investors. It is assumed that the oil production cut applied by OPEC and allied countries started on the first of May, and yet it did not contribute to supporting the prices.
On the other hand, the weekly US Crude Oil Inventories report was issued yesterday, and the report stated that inventories increased in the second week of the month, which means a decrease in demand, and this also put pressure on prices and lowered them.
During this period, investors fear a further decline in demand and the return of oil prices to a decline. Yesterday, Chinese data related to industrial production and retail sales were released, and the results were disappointing. On the evening of the same day, US retail sales for the month of April were also issued, and they were also less than Expectations, although improved from the previous reading.
It is known that the US and Chinese data impact the oil market, as the US and China are the two largest oil-consuming countries in the world, and the decline in oil-dependent sales or industrial production means that the market needs improvement and support in this regard.
Added to the concerns surrounding the oil market are the talks between the White House and the US Congress on the possibility of raising the government debt ceiling, and the Treasury Department has warned that this matter may affect the government’s ability to meet its debts.
Today, the report of the US Energy Information Administration is expected to be announced, which is also a weekly report that studies the number of available US crude oil inventories, and it also has an impact on the experts’ view of the demand for oil.
