On May 19, international oil prices fell sharply. The main contract of the WTI crude oil futures market in the United States settled at $63.35 / BBL, down $2.15 or 3.3%. Brent crude settled at $66.66 / BBL, down $2.05, or 3.0 percent, on concerns that a surge in new cases in Asia would further depress demand and that new progress in the U.S. -Iran nuclear deal would lead to increased supply expectations. Oil prices tumbled more than 3 percent as U.S. inflation increased the odds that the Fed would raise interest rates.

Oil prices fell on Tuesday after news leaked that the United States and Iran were back at the negotiating table on resuming a nuclear deal with Iran. The latest news shows that Iranian President Hassan Rouhani said publicly on the 19th that the talks on the comprehensive agreement on the Iranian nuclear issue have made significant progress in Vienna, Austria. If a deal is reached, Iran could bring an additional 1 million to 2 million b/d of oil to the market, putting pressure on supply expectations.

In addition, oil prices fell for a more important factor is the concerns of the outbreak, new cases of pneumonia outbreak in Asia continues to surge, the situation in India now also worries market, maybe a long time hurt India's energy demand, there may be a late business failure such as a chain reaction of demand plummeted.

In addition, the current inflation expectations, the market on the Federal Reserve increased the probability of interest rates are also weighing on oil prices. The minutes of the Fed's April meeting, released yesterday, showed that some officials acknowledged the upside risks to inflation and suggested that tapering should be discussed. Triggered further bearish sentiment.

On Wednesday, data on U.S. crude inventories were more positive, with commercial crude inventories from the U.S. Energy Information Administration showing a 1.32 million barrel increase to 486.011 million barrels in the week ended May 14. Markets were expecting a 1.6 million barrel increase, less than expected. Gasoline and distillate stocks fell more than expected, with distillate stocks, which include diesel and heating oil, falling 2.324 million barrels to 132.995 million barrels against market expectations for a 386,000 barrel decline. From this point of view, the market demand is still improving positively, but the market focus remains on the outbreak and the outcome of the US-Iran nuclear talks.

Crude oil analysts of the SunSirs believe that the recent oil market's negative news is diffuse, and the market mainly focuses on the progress of the US Iraq nuclear agreement, which has triggered a long panic, which is an uncertain negative factor, and the oil price will be more volatile shortly. In addition, the trend of the epidemic in India and other Asian countries is determined, and oil prices will still be suppressed in the medium term. But at present, the global economic recovery is still in progress, the US and European economies continue to recover, and China is also optimistic. In the long term, oil prices are still positive.

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