OPEC+ slightly raises crude oil supply limit International oil prices rose on May 5

OPEC and non-OPEC producers decided to continue to slightly increase the monthly crude oil supply limit, while the market was worried about the possible comprehensive sanctions imposed by the European Union on Russian oil exports, and international oil prices rose
on the 5th.

Light crude futures for June delivery rose $0.
45, or 0.
42%,
to settle at $108.
26 a barrel on the New York Mercantile Exchange by the close of the day.
London Brent crude futures for July delivery rose $0.
76, or 0.
69%, to settle at $110.
90 a barrel
.

OPEC issued an announcement on May 5 that the ministerial meeting between OPEC and non-OPEC oil producers held on the same day decided to raise the crude oil supply limit in June by 432,000 barrels, which was consistent with the previous plan and in line with market expectations
.

UBS Group said on May 5 that the recent trend in oil prices was partly constrained
by recent demand risks.
The agency believes that the oil market still underestimates the risks to the current energy supply, and the price of Brent crude oil will be around $115/barrel during the forecast period
.

UBS said that the EU's proposed oil embargo on Russia still needs to be approved by member states, so the situation may change
.
If the sanctions eventually passed are as severe as currently recommended, oil prices could rise
.

Bjornar Tonhaugen, head of oil market research at Norwegian oil and gas information service Rystad, said the oil market has not yet fully reflected the possibility of a possible EU embargo on Russian oil, and if the EU does adopt this decision, oil prices will rise further this summer
.

Warren Patterson, head of commodity strategy at Commerzbank, said the EU's proposed oil embargo on Russia was at risk
.
Russia may stop oil supplies to the EU early, which will make it difficult for the EU to find other supplies
in the short term.

In addition, the Biden administration announced on the same day that the US Department of Energy will begin to buy 60 million barrels of crude oil from the market this fall to fill the previously released strategic crude oil reserves, in response to Robert Yawger, head of energy futures business at Mizuho Securities USA, believes that forward contract oil prices will usher in a strong positive in the next few months, and the situation that forward month oil prices are significantly lower than front-month crude oil futures contract prices may change
.