1. Production and stocks: According to the weekly report published by the EIA, the US stocks of crude oil increased by 2,523 million barrels during the week ended on June 7th. The current figures are 393,808 million barrels.
Analysts had expected the oil stocks to decline by 1500 barrels. At the same time, gasoline stocks increased by 2,748 million barrels.
2. Major market drivers:
Bearish drivers:
· Higher US oil stocks.
· The OPEC left oil production quotas unchanged at 30 million barrels a day.
· The OPEC forecast for global oil demand indicates a decline.
· The Fed may curtail its bond purchase program in late summer- early fall.
· The EIA expects a 14% increase in the global production of crude oil.
Bullish drivers:
· Weaker USD index supports oil prices.
· Geopolitical risks in the Middle East.
· Seasonality indicates flat markets in June.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of WTI oil:
