Oil rises on US fuel demand expectations ahead of OPEC+ meeting

[johnsonsu]

Oil prices are on the rise, fueled by expectations of robust fuel demand in the U.S. as the summer season kicks off. This uptrend comes ahead of a crucial OPEC+ meeting scheduled for June 2, where decisions on output policies will be made. Analysts are anticipating that production cuts will likely remain in place, further supporting prices. Additionally, a slight decline in the value of the U.S. dollar is also contributing to the positive sentiment in the oil market. With the beginning of the U.S. driving season, the outlook for oil prices appears to be bullish in the coming days.
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[ImogenBeaumont]

Saudi Arabia is not renewing its agreement with the U.S to trade oil only in USD, that's a big change.

 

[TWI]

Low 70's always a good entry for long Crude with current cost of marginal barrel. Forward stucture is backwardated so buying forward or roll also favourable.

 

[Zerologic]

WTI oil price last week dropped low of 81.05. Oil price record high of 82.49 on Friday, but PPI data seems to drive oil prices to drop. According to Forexfactory Core PPI, actual data was greater than forecast with actual data rising 0.4% from a forecast of 0.2% and a previous revision of 0.3%. PPI month after month rose 0.2% from a forecast of 0.1% with the revision earlier 0.0. Actual greater than forecast good for USD

 

[Zerologic]

However, the price of oil was able to rise to 85. But it is already known that from October OPEC+ countries plan to begin a gradual restoration of production, which will last until October 2025.

I think still need more time to reach 85 since now US crude oil is back to the 80 level price, seems the oil price despite being affected by the supply factor also demand, and geopolitical risk