Fundamental analysis
01 June, 2022
Oil prices gained slightly on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai. Both benchmarks ended May higher, marking the sixth straight month of rising prices. EU leaders agreed in principle on Monday to cut 90% of oil imports from Russia by the end of this year, the bloc's toughest sanctions yet on Moscow since the invasion of Ukraine three months ago, which Moscow calls a "special military operation". Capping gains were reports that some producers were exploring the idea of suspending Russia's participation in a production deal of OPEC+, a grouping of Organization of the Petroleum Exporting Countries members and their allies, on expectations such a move would increase supply. Data from the U.S. government on stockpiles was expected on Thursday. Analysts, in a Reuters poll, expected U.S. crude oil inventories to fall last week, while gasoline and distillate stockpiles were seen up.
