Oil's Bohemian Rhapsody

Is this the real oil market life?
Is this just fantasy?
Caught in a landslide
No escape from reality.

Good gains marked on Wednesday
Then steep lows seen on Thursday
Open your eyes
Look up to the skies and see
That the global market remains oversupplied
But crude needs no sympathy
Because it easy comes, easy goes
A little high, little low
Anyway the wind blows
But sometimes a bit matters.

Traders, worries are taking control
Over the global economy slow
Asia, Europe, Brexit uncertainty blow.

The highest OPEC output just killed the mood
Pulled the trigger and now oil cartel limit is dead
The new monthly report will send shivers
With latest output figures
That will be thrown away
after another day.

Do not expect prices to rebound
To some major extent over the next month.

Prices aching all the time
Could be seen in lows at $35
But leave it all behind, as near-term range might be at $45-$50.

Nothing really matters
Anyway the wind blows.

Crude oil pressured by the strong US dollar

Crude oil prices are moving downwards after both benchmarks WTI and Brent reached the psychological level at $50.00 per barrel for first time since respectively October and November last year. The appreciation of "black gold" could be considered by the Fed as another sign for economy improvement in global aspect, that could support the eventual increase in interest rates in the US in June.  The appreciation itself would hardly be a determining factor in the decision of the central bankers, but that in turn would affect the levels of inflation in the country. Although it is not expected significant reduction of production levels, investors are awaiting the OPEC meeting on Thursday in Vienna, which outcome would impact on quotations of the crude oil.

Today oil prices still suffer from the stronger US dollar, though it was slightly supported by the beginning of the summer season in the US, which coincides with the US crude production decline to its lowest level since September 2014.

Today's trend is a continuation of the market situation from the end of last week. In the morning WTI slipped with 12 cents to trade at $49.21 and Brent fell with 21 cents to $49.11.

On Wednesday will be released the data by the American Petrolium Institute and on Thursday is due the official government data. And ahead of the OPEC meeting, this week will bring increased volatility on markets.