Oil prices are expected to continue rising after the United States filed an antitrust lawsuit against OPEC

The House passes the NOPEC bill

On May 5, the Judiciary Committee of the US House of Representatives passed a bill that would allow the US Justice Department to bring antitrust charges against members of the Organization of Petroleum Exporting Countries (OPEC)  their partners for conspiring to drive up oil prices. The plan aims to crack down on OPEC collusion to manipulate oil prices. Oil prices took their biggest drop in two weeks yesterday on the news, with WTI crude falling 1.2% to $62.67 a barrel  Brent falling 0.7% to $66.57 a barrel.

The bill, however, will have little practical impact on crude prices. In fact, the U.S. Congress has pressed similar legislation against OPEC for the past 20 years at times of rising oil prices, without success, so it is far  certain that the current bill will ever make it to a vote in the House  Senate.

The day again ushered in crude oil inventory data

Crude prices surged last week, briefly reaching $64 a barrel yesterday, as U.S. crude inventories fell to their lowest level since February, dropping 5.89 million barrels, the biggest drop in two months. Despite signs of worsening in Europe, America  Japan, the overall global economic recovery does  appear to be hampering the rise in oil demand.

march recently released economic data, us  European retail sales data, PMI index  industrial output showed epidemic worsened over the past few weeks has  slowed the pace of economic recovery, that is to say, this time the outbreak again temporarily  seen as when the last outbreak hit the economic operation, sustainable economic recovery is expected to continue to support oil demand is rising.

During the day, the EIA will report again on crude inventories for the week  is expected to record another 3.55 million barrel decline, which is in line with expectations  could give oil another boost.

OPEC may cancel ministerial meeting next week

In addition to the fact that the outbreak appears to be unhindered by the economic recovery, news that OPEC+ will consider holding only a meeting of the Joint Ministerial Oversight Committee (JMMC) next week, rather than a full ministerial meeting, indicates that OPEC+ will  make any changes to its production policy. The market has already priced in OPEC+ to increase production gradually in May-July,  OEPC+ has  yet shown the intention to increase production actively again, which will be further positive news for the current oil price.

Crude oil is on track for another record for the year

WTI crude pulled back  the 64 level to $62 / BBL yesterday, returning to the resistance level seen in the previous consolidation range. Technically, crude broke out of the past two weeks' trading zone last week  is building uptrend patterns that are further building up a new uptrend line, with WTI poised to hold the $60 mark in the near term  possibly challenge the year's high of $67 again.

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Source: International Petroleum Network