Oil struggles to break support until Saudi-Russian alliance breaks down

On June 13th, China Securities Futures said that international crude oil futures fell sharply by 4% on Monday. The crude oil market has demonstrated that if there is no good news in the market, the price will gradually fall back. Saudi Aramco told a number of European and North Asian buyers that it will fully supply crude oil orders for July, and market speculation that Saudi Arabia’s production cuts may also be carried out by reducing inventories. The U.S. will announce CPI on Tuesday, and the trend of CPI will determine the path of the Fed’s interest rate hike. The offshore RMB against the U.S. dollar has hit a new low this year, and the macro data is slightly flat. An investment bank lowered its oil price forecast, which is also the main bearish concern of the market. On Monday, WTI‘s Contango structure further declined, Brent’s monthly spread also weakened, and oil prices were close to previous lows. Before the Saudi-Russian alliance broke down, oil prices were still difficult to break below the support, and they were still treated as shocks.