OPEC report does not improve the sentiment on the oil market

During today's session we can observe mixed sentiment in the oil market. On the one hand, we had speculation about a potential agreement between Saudi Arabia and the UAE, which theoretically could be positive for oil. On the other hand, the DOE report, while showing a sizable drop in inventories, ultimately led to a sell-off. Additionally, the recent appreciation of the dollar weighs heavily on oil.

The OPEC report for June was published today. Of course, OPEC picked up production as intended. The largest contributor responsible for the increase in production is, of course, Saudi Arabia.The world demand forecast itself has not been significantly changed. OPEC sees an increase in demand in 2022 by 3.28 million bpd, while this year by 5.95 million bpd. Contrary to the IEA report, the OPEC report does not call for a faster recovery of production, although at the same time it points to a growing demand for oil.

OPEC is restoring production as planned. Source: OPEC

Crude oil continues to decline and is testing the lower limit of the overbalance structure. Source: xStation5