Crude oil price is back in the green territory,
having been volatile for most part of yesterday in light of the data that came
from India about its oil consumption – and the inevitable impact on its
economy.
By gathering data from three major sources,
including statistics on the community mobility in the vast country, the EIA,
Energy Information Administration of the US, declared the previous day that the
way crude oil sector suffered was much worse than expected.
The crude oil markets reacted to the grim news and
the crude oil price lost the momentum of upward price trend – temporarily;
markets cannot ignore the Indian factor, as the country is the third largest
crude oil importer – and consumer.
Having ridden the Indian tide rather uncomfortably,
the crude oil markets now keenly watch the latest OPEC+ meeting, scheduled for
next week. The group is meeting on Tuesday, June, 1, to assess the market
conditions with respect to the increased output of crude oil.
The indications are they will stick to the increased
output for the period of May to June.
The meeting, next week, is going to be a special
one: Iran, a major member of the group, is about to enter the markets as a
normal trading nation, hoping to see the back of the sanctions; the members
will certainly weigh the anticipated, additional Iranian output against hypothetical
fears of an impending oil glut; Iran may assure members that its organizational
obligations would be honoured despite it being in urgent need of petro-cash.
Russia, meanwhile, said recently that there is still
a supply shortfall of over 1millions bpd, despite the increased supply from the
OPEC+.
In this context, the OPEC+ may not create unexpected
ripples in the crude oil markets with surprise moves.
