The price of oil fell by about 0.5% after jumping by about 2% yesterday. The price correction was caused by partial profit-taking, as well as continued investor caution about the prospects for global demand growth amid expectations of increased supplies.
The positive dynamics of the US currency also put pressure on prices. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.15% to 105.48.
Experts said that global crude oil inventories and refined product storage in the United States and Singapore was higher, while global oil demand growth slowed to 890,000 barrels per day year-on-year in Q1, and consumption growth is likely to slow further in Q2.
The data also showed that China's oil refinery output fell by 1.8% per annum in May, as refineries carried out scheduled repairs, and refining profitability came under pressure due to rising oil prices.
Market participants also hope that today's speeches by Fed policymakers will help clarify the prospects for monetary policy, which in turn may affect demand for petroleum products. According to the CME FedWatch Tool, markets see a 8.3% probability of a 25 basis point rate cut at the Fed meeting in July, a 61.5% probability of a rate cut in September, and a 74.9% probability of monetary policy easing in November.