The situation in the Middle East is increasingly tense to provide support for oil prices. OPEC will increase production in the market without tightening production.
The IEA cut its oil demand growth forecast for 2019 by 90,000 barrels to 1.3 million barrels per day. Previous API data showed that US crude oil inventories unexpectedly recorded a significant increase, and refined oil inventories also increased. However, the situation in the Middle East has become increasingly tight, providing support for oil prices. The American Petroleum Institute said on Tuesday that US crude oil inventories unexpectedly increased last week, and gasoline and distillate stocks also rose.
Before this, oil prices were supported because Saudi Arabia said that several armed people were armed. The aircraft attacked two oil pumping stations in the country on Tuesday. OPEC said on Tuesday that with the slowdown in supply growth from competitors including US shale oil producers, global demand for oil this year will be higher than previously expected. This shows that if OPEC does not increase production, market supply will be tightened.