The crude oil prices weakened in Asian trade earlier in this week or in 6 of June 2022. It was ignoring the news of saudi arabia's oil selling price which increase. 

At the time of this news written, Brent oil was in the range of $122.95 per barrel or weakened by 1.17 percent. Meanwhile, West Texas Intermediate or so called WTI was down by 1.00 % at $120.72 a barrel.

After the European Union's decision to blockade horrendous Russian oil imports, Saudi Arabia announced that it would raise the official selling price (OSP) of oil from $4.4 to $6.5.

It is for the sales next July. This will be the d level since that commodity prices soared to a peak of $137.98 a barrel in April. However, many other changes could be happened again. 

OPEC Pushes their Production, Oil Bullish Depends on the Decision

Saudi Arabia's decision to raise the selling price of oil for July delivery failed to boost the prices of this commodity further. This is in connection with OPEC+ which recently decided to increase their daily production. 

At last week's meeting, the organization agreed to pump for about 648 thousand barrels of oil per day (bph). This new rule is for the July and August period. 

It means that the number is 50 percent more than the previous month's output. One of OPEC's major oil producers, Iraq, even plans to increase production to 4.58 million bph in July. 

The move is allegedly to fill the supply vacuum after a sharp drop in production due to Western sanctions against Russia. It is hoped that the action like this may fix the situation. 

Prospective of Oil Price in the Future 

It is so interesting to know about what predictions made by people due to this commodity Value. Many analysts and experts predicted that the prices will remain high for a short term period. 

It is normal since the OPEC production increase impact is not that effective and it just temporary as well. Furthernore, the other factors also have their effect. 

Those are like the COVID-19 lockdown which was loosened in China and the hot season in United States. These factors will support the demand of oil to make the price remains high. 

Before, World crude oil prices rallied significantly in early week trading to break a two-month high of $120 a barrel. The cause was a positive sentiment from China, which has begun easing COVID restrictions. 

China’s Loosen Their Restrictions on COVID-19 

Last month , this commodity climbed in the range of $122.27 per barrel, while WTI moved in the range of $120.06 per barrel. For about two weeks ago the Chinese government announced that. 

They would loosen their restrictions in the city of Shanghai and some regions that have been affected by COVID for the past two months. This news is of course was a positive catalyst.

This news drives the strengthening of the price of black gold. The reason is that the economic activity of Shanghai, which is the largest city in China, will recover, which has great potential to increase the demand.

Gold Bullish is Affected by The fed Decision

High interest rates have the potential to be a big stumbling block for bullish gold. Central bank rate hikes, particularly the Fed, are likely to strengthen the rate USD. 

That was making the cost of gold ownership is more expensive. The main topic of the gold market is still concerns about inflation. That is likely to continue to be behind market movements.

It may give rise to a slight increase in buying interest as well. That is in line with many analysts said lately in some occasions. Now people are witnessing short-covering in the futures market. A bit of bargain-hunting in the cash market after the last selling pressure is also seen.