Domestic SC Crude Oil Futures Rose Sharply on May 17

  Analysis review

  Overnight, international oil prices rose for 4 consecutive trading days. The settlement price of the main U.S. WTI crude oil futures contract was 114.20 US dollars/barrel, an increase of 3.71 US dollars or 3.4%; the settlement price of the main contract of Brent crude oil futures was 114.24 US dollars/barrel, an increase of 2.69 USD or 2.4%. Inner disk SC crude oil was boosted by this, and the price rose significantly, reaching 3.58%.

  The main reason: U.S. gasoline prices have soared to record highs, and demand remains strong. In addition, Finland and Sweden announced that they will apply to join NATO, and geopolitical tensions around Russia are heating up. In addition, although the EU’s oil ban on Russia has not been implemented, Germany still plans to stop importing oil from Russia within this year, and the supply tightening is expected to be difficult to ease in the short term.

  Market outlook

  In the short term, oil prices will still be boosted by low inventories and expectations of tightening supply, and will run at a high level under the influence of the EU’s expectation of the implementation of the Russian oil ban bill. In the medium and long term, oil prices will seek to rebalance supply and demand in the context of the Fed raising interest rates and increasing demand uncertainty.