On June 6, with the end of the new OPEC+ meeting, the OPEC+ production reduction agreement will continue until the end of 2024. The meeting sacrificed African quotas to make up for 200,000 barrels in the United Arab Emirates. At the same time, in order to appease member Saudi Arabia, it will cut production by 1 million barrels alone in July At present, except for Saudi Arabia, other members have no willingness to further reduce production, and there is also a lack of constraints on Russia.
On the demand side, the U.S. PMI is lower than expected. The EIA weekly report shows that U.S. watch demand is average, and gasoline and diesel consumption have weakened. The debt ceiling negotiations between Biden and Congress are in progress, and the market awaits the results.
The U.S. oil product table needs to be close to 2022, and the performance is normal. There will be peak season expectations in July and August, and the global manufacturing PMI will show a downward trend, dragging down the demand for crude oil industry.
At present, oil prices are still a game between the prospect of a macro recession and OPEC+ production cuts. The peak season travel in the United States may not be as good as expected. Under the pressure of the global recession, crude oil is still expected to fluctuate and fall.
