Daily chart: Oil prices closed down slightly overnight and remained within this week's shock range. At present, the opening of the Polyga channel is significantly narrowed, and the RSI remains near the midline, waiting for more news guidance. The initial resistance looks at the 67 mark, Friday's high. 4-hour chart: Oil prices fluctuated lower during the Asia-Europe period, but the lower track of the Poly Channel provided partial support. At present, it is temporSingapore crude oil marketarily stabilized above the moving averages. The short-term resistance is last Friday's high and the support is MA20640. Hourly chart: After the Asian market opened today, oil prices rose rapidly, and the short-term moving average crossed the long-term moving average or supported a moderate increase in oil prices.
The apparent conformity of the oil-producing countries may be to relieve their pressure, and the real frozen production still needs to wait for the final meeting results. The API data released at 4:30 in the morning was larger than expected and was negative, and the EIA data predicted in the evening was also negative.
During this small Dragon Boat Festival holiday, the crude oil market broke out another round of strong volatility. Last week, crude oil prices stabilized at the 65-dollar line, although they once maintained a shock in the 65-66 range, but after breaking through the 66-line, the rally expanded further. To 67 US dollars, however, the increase accumulated over the past few days fell short within one day on Friday. Because Saudi Arabia and Russia have shown obvious attitudes towards increasing production, this OPEC meeting does not seem to have much suspense about increasing production, coupled with the Sino-US trade war. With further heating up, crude oil prices plummeted last Friday, and yesterday’s market also expanded its decline to below $64 after the market opened. However, news that OPEC's production increase may not be as expected, which rescued the decline in crude oil in time. In this way, the market once again returned to the 65-66 shock range.
Affected by this, international oil prices have fallen sharply recently. At the close of trading on May 25, the price of light crude oil futures for July delivery on the New York Mercantile Exchange closed at US$688 per barrel, a decrease of 0%. The price of London Brent crude oil futures for delivery in July fell 5 US dollars to close at 744 US dollars per barrel, a decrease of 98%.
After Saudi Arabia and Russia put forward plans to increase production appropriately, some of the remaining 22 oil-producing countries involved in production cuts did not approve of this. Because relaxing production cuts will hardly benefit them. If the relaxation leads to a further drop in oil prices, it will reduce their existing benefits or even suffer losses.
In the morning, the US API inventory was announced, and the US EIA inventory was grandly launched this evening. Under the premise Singapore crude oil marketthat API inventory is greatly reduced and refined oil inventories increase, EIA inventory may be reversed. Investors are advised to pay close attention.