Oil Price Talking Points
The price of oil[1] climbs to a fresh monthly-high ($57.37) ahead of the Group of 20 (G20) Summit, with crude at risk of staging a larger recovery as the bearish momentum abates.
Oil Price Forecast: Bearish Momentum Abates Ahead of G20 Summit
Oil extends the advance following the 3106K contraction in US Crude Inventories, with the price of crude breaking out of a narrow range, and developments coming out of the G20 Summit may keep energy prices afloat as US President Donald Trump is scheduled to meet with China President Xi Jinping.
It remains to be seen if the US and China, the two largest consumers of oil, will reach a trade agreement as the Trump administration relies of tariffs to push its agenda, but efforts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies may help to stave off a bear market as the group appears to be in no rush to boost production.
Recent comments coming out of Russia suggest the region will continue to push for higher oil prices as Lukoil CEO Vagit Alekperov insists that “the OPEC+ agreement should exist permanently,” and the alliance may keep crude afloat ahead of the Joint Ministerial Monitoring Committee (JMMC) on July 1 especially as RussiaPresident Vladimir Putin[2] notes that “$60-65 a barrel suits us just fine.”
With that said, crude may stage a larger rebound ahead of the G20 Summit, and efforts by OPEC and its allies may keep crude prices afloat if the group continues to curb
