Energy & Chemical Futures Daily Review

By    11 May,2022

Crude oil: supply tensions oil prices to maintain oscillation on the strong side.

Domestic crude oil futures prices rebounded with a slight shock on Monday.


 Despite the unexpected increase in U.S. commercial crude oil inventories, however, market concerns about tight crude oil supplies remain. As of the week of April 29, U.S. crude oil inventories amounted to 415.727 million barrels, up 1.3 million barrels from the previous week; crude oil stocks in the Cushing, Oklahoma, U.S. region were 28.829 million barrels, up 1.38 million barrels from the previous week. OPEC+ continued to increase production slightly as originally planned, with surveys showing that OPEC produced 28.58 million barrels of crude oil per day in April, up 40,000 barrels per day from March, well below the The production agreement calls for an increase of 254,000 barrels per day. Markets are concerned about the proposed sixth round of EU sanctions, which the EU is adjusting its sanctions program to gain the consent of countries unwilling to implement them. An embargo on EU oil is imminent, leading to severe supply constraints. on May 5 the U.S. Department of Energy announced plans to tender for 60 million barrels of crude oil this fall to replenish the depleting Strategic Petroleum Reserve, the timing of which will depend on expected market conditions. Technically, oil price SC2206 may remain in the 600-720 yuan/barrel range in the short-term oscillating strong operation. Operation advice: oscillation bias operation.