FX.co ★ OPEC+ decision sets up oil market roller-coaster ride

On Wednesday, oil prices declined amid the OPEC+ decision to keep its latest May-July crude production policy unchanged.

Thus, Brent oil futures for June delivery closed at $66.58 per barrel, losing 0.24% compared to the closing price of the previous session. On Tuesday, Brent crude rose by 1.2% to $66.42 per barrel.

June West Texas Intermediate crude settled at $63.06 per barrel, sagging by 0.19% from the closing level of the previous trading day. The day before, the North Sea oil price jumped by 1.7% to $62.94 per barrel.

On Tuesday, the OPEC+ meeting showed no unexpected surprises. The member countries of the international organization decided to adhere to the previous oil production plan adopted on April 1, 2021. The next OPEC+ meeting is scheduled for June 1.

At the same time, there is growing angst among investors over a surge in new COVID-19 infections in India, which could lead to a tangible decrease in oil demand.

On Wednesday, oil market participants are awaiting data on energy inventories in the United States.

Thus, the American Petroleum Institute reported on Tuesday that US crude supplies rose by 4.3 million barrels during the last week. At the same time, the country's gasoline stockpiles were down by 1.3 million barrels, and distillate inventories declined by 2.4 million barrels.

Experts predict that data from the US Department of Energy will show a drop in crude inventories in the United States by 200 thousand barrels. According to analysts' forecasts, gasoline reserves have remained unchanged, while distillate inventories have decreased by 1.2 million barrels.

By the way, investor sentiment in the oil market was highly euphoric on Tuesday. WTI crude oil rose to a weekly high following the statement of US President Joe Biden.

In his speech, Biden announced the tremendous progress in combating the COVID-19 pandemic and vaccinating the American population. Thus, about 215 million people have already been vaccinated in the United States, including 67% of the country's senior citizens.

Today, the issue of vaccination is crucial for the oil market, which directly depends on the demand for fuel necessary for transport.