The last week of May significantly cooled down the enthusiasm of the oil market optimists.

The cheerfully started oil rally exhausted the potential and literally in a couple of days the oil quotes of the North Sea blend lost about $ 5. The geopolitical situation, the decline in production, the news from Venezuela ceased to be a driver for oil prices. The reason for such a sharp decline were the statements by Russia and Saudi Arabia about a possible easing of the terms of the OPEC + deal. The participants in the production limitation agreement will hold a new meeting in June, after which it will become clear which step Russia and Saudi Arabia are ready to take first.

In addition to fundamental factors, the situation was influenced by purely market patterns. In recent times, literally everything has played an upward trend, the net long position has reached an absolute record. In such conditions, further growth was almost impossible, so market participants witnessed a strong fall on very large volumes. Current dynamics can be defined as a regular correction after almost continuous growth from the beginning of April, which is a rather rare case.

The situation around Iran also continued to remain in focus. On Tuesday, it became known that Tehran is negotiating with Europe to continue delivering oil there, said Mohammad Bagher Nobaht, the official representative of the Iranian government. "In addition to the EU states, we are establishing relations with other countries, primarily with our neighbors," the statement said. Nobhaht cited as an example the visit of Iranian Foreign Minister Mohammad Javad Zarif to India and his recent trip to Thailand. According to Nobaht, Iran sells most of its oil to India and China. Indian Foreign Minister Sushva Svaraj on Monday at a press conference in New Delhi stressed that the country will continue to trade with Iran, despite the return of US sanctions against Tehran. "India respects UN sanctions only, not unilateral sanctions imposed by any country," Svaraj said.

By the middle of the week, the price of oil stabilized. July futures for Brent crude fell by $ 0.15 (0.20%) - to $ 75.24 per barrel. At the auction on the previous day, their price increased by $ 0.09 (0.12%) and accounted for $ 75.39 per barrel. Quotes of futures for oil WTI for July morning on Wednesday increased by $ 0.01 (0.01%) - to $ 66.74 per barrel. The last session they finished at around $ 66.73 per barrel.

On Thursday it became known that Iranian Oil Minister Bijan Namdar Zangane asked for support from the Organization of Petroleum Exporting Countries (OPEC) in the conditions of the US sanctions regime against the Islamic Republic. He wrote about this in a letter to the Minister of Energy of the UAE, Suheil al-Mazrui, who currently holds the transitional office of the president of the OPEC conferences. The Minister referred to the second article of the OPEC statute, which refers to the protection of the interests of member countries individually and collectively. At the same time Zangane characterized the sanctions as "illegal, unilateral and extraterritorial."

The week ended with a decline in oil quotes after the news of record production in the US. August futures for the North Sea oil blend of Brent brand lost 0.1% in price, reaching 77.48 dollars per barrel. July futures for WTI crude oil fell by 0.24%, their value is 66.88 dollars per barrel. Investors reacted to information about the return of the United States to record average daily oil production. For the first time in US history, production reached 10.474 million barrels per day, an increase of 2.1% in monthly terms and 14.6%

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