Us crude hovered around 73.70 in Asia on Wednesday, with oil prices falling the most since the end of May on Tuesday as a stronger dollar spurred a broad sell-off across commodity markets and growing uncertainty about what OPEC would do next. 

White House Press Secretary Jen Psaki said Biden administration officials were "encouraged" by the ongoing OPEC negotiations and spoke with officials from Saudi Arabia and the United Arab Emirates, hoping to reach an agreement to stop crude oil prices from rising. Crude oil prices soared and fluctuated sharply as Saudi Arabia and the United Arab Emirates quarreled over increasing production. The impasse in the negotiations increases the likelihood that the two countries will abandon quota restrictions and increase supply.

RichPontillo, a senior energy analyst at Nasdaq, said demand for crude oil should remain strong in the coming months. "whether OPEC + reaches an agreement to increase production by 400000 b / d a month by the end of 2022, they will reach some kind of agreement," Pontillo said. At present, the crude oil market is only slightly rectified, and there is still room for oil prices to rise. " Pontillo pointed out that expectations for oil prices will remain high, and he believes there is still more room for oil prices to rise. 

Pontillo also said that even if the Delta virus sweeps across Europe, there will be no reduction in domestic activity in the United States. "We have seen very strong domestic activity in the United States, and ordinary consumers are still very eager to go out, spend, drive, and fly," Pontillo said. Even if the government does start to impose restrictions on going out, it will not reduce the willingness of the American people to go out. Unless similar restrictions are as stringent as they were at the beginning of the COVID-19 epidemic last year, I think domestic activities in the United States will continue. " PVM Oil Associates Ltd. "there is a lot of uncertainty about OPEC+ production policy in the coming months, which will lead to higher volatility," said Tamas Varga, an analyst.

Focus on May JOLTs job openings in the United States, 4:30 announcement of US API crude oil inventory changes in the week ended July 2, release of EIA monthly short-term energy outlook report in the early hours of Thursday, and minutes of the Fed's monetary policy meeting at 2: 30 on Thursday.

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