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What Are the Main Fundamentals for Crude Oil to Look At? Russia’s Revenues boosted by High Oil Prices, OPEC+ Rising Output, Dropping US Inventories.

On Thursday (June 2), black gold prices rallied more than one percent after US crude reserves dropped more than expected amid higher demand for fuel, despite the OPEC+’s output deal to boost crude oil supplies by 648k barrels per day this summer, instead of its planned 432k) to offset the drop in Russian oil production.

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Today, Russia's finance ministry just said it expected to receive 393 billion roubles ($6.35 bn) in additional oil and gas revenue this month.

United States Crude Oil Inventories

The weekly commercial crude oil reserves in the United States fell almost four times more than the predictions, according to figures released on Thursday by the US Energy Information Administration (EIA).


US crude inventories have decreased by over five million barrels, which implies greater demand and is considered a bullish factor for crude oil prices. Here, the difference with the forecasted figure is quite high, which is why the increased output from OPEC+ remained in the back.


(Source: Investing.com)


WTI Crude Oil (CLM22) Futures (June contract, daily chart)

United States Gasoline Inventories

The following are US Gasoline Reserves which were extracted from the same released report:


The above figure confirmed the drop in fuel, which analysts did not expect to drop over a week, so the figure falls into the bullish side as well. Personally, I was mentioning the likeliness of a potential drop in my last analysis from May 26, because of a demand acceleration triggered by the beginning of the Summer Driving Season in the USA.


(Source: Investing.com)


RBOB Gasoline (RBM22) Futures (June contract, daily chart)

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Sebastien Bischeri

Oil & Gas Trading Strategist

The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.