Crude oil prices are recording some gains in mid-trading on Wednesday, May 28, after two consecutive sessions of decline since the beginning of the week, influenced by market expectations of a further increase from OPEC+ at its meeting early next week. Crude oil is benefiting today from Chevron’s decision to ban crude exports from Venezuela and some additional factors amid anticipation of inventory figures. Brent crude is rising by about 0.97%, trading at $64.71 per barrel, while US crude (NYMEX) is trading at $61.53 per barrel, up about 1.05%.
Oil markets are awaiting the decision of OPEC and its non-OPEC allies, led by Russia, at their meeting on May 31. This comes amid expectations of a further increase in production by eight key members of the organization in July for the third consecutive month. The increase is expected to be similar to June’s, at 411,000 barrels per day. Statements by the US President that he is considering imposing new sanctions on Moscow following its recent attacks on Ukraine, the US administration’s decision to bar Chevron from exporting oil from Venezuela and expanding its operations while allowing it to maintain its assets, the shutdown of production in the Canadian province of Alberta due to wildfires, and the easing of trade tensions between the United States and the European Union are all factors supporting crude oil prices. However, expectations of increased production from OPEC are overshadowing further gains in crude prices.
Markets are awaiting US oil inventory figures from the American Petroleum Institute on Wednesday, ahead of official figures from the US Energy Information Administration on Thursday.