Oil prices rose for two consecutive days on Monday and Tuesday, reaching the highest point since April. Tyler Richey, co-editor of Sevens Report Research, said that this was due to the "price-supporting comments" of the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Richey stated that the emotional selling caused by the reflex of the June 2 OPEC+ decision to gradually phase out voluntary production cuts after the third quarter has largely reversed and is seen as an overreaction by the market. The OPEC+ leadership "confirmed their flexibility and will only reduce their voluntary production cuts when market conditions allow, while clarifying that increasing production is not necessarily the main expectation at present.

Richey said that strong demand from the start of the U.S. summer driving season, escalating geopolitical tensions overseas, and hopes that the U.S. economy can achieve a soft landing have also contributed to the rebound in oil prices.

The API crude oil inventory for the week ending June 14 in the United States, which was announced early this morning, is reference data.

Crude oil inventory +2.26 million barrels

Cushing inventory +524,000 barrels

Gasoline inventory -1.08 million barrels

Distillate inventory +538,000 barrels

The data shows that crude oil inventories have increased for the third consecutive week, while gasoline inventories have decreased for the first time in four weeks.

After API data was announced, WTI crude oil saw a slight increase.

WTI broke all major technical levels this week.

Richey said, "Because of the increasing attacks on Red Sea ships related to the conflict between Israel and Hamas and Hezbollah, geopolitics has become a major factor affecting the market again in recent weeks." He said Ukraine resumed drone attacks on Russian oil and energy infrastructure this week, and a finished oil terminal in Azov was hit, causing an explosion and fire at the facility.

However, the oil market sentiment is "fragile," and "if we see any headline news that contradicts any factors supporting the recent increase, or even a rise in the widespread market volatility at the end of this quarter, we may see the oil market return to the middle range of $70 per barrel."

Finally, the anti-inflation process that boosted people's hopes for the Federal Reserve's first interest rate cut and helped Biden out of trouble may suddenly stall.