On Wednesday (May 17th) during the Asian session, US crude oil traded in a narrow range, currently around $70.39 per barrel. Unexpectedly large increase in API crude oil inventories raised concerns about demand, while the market cooled down its expectations of a rate cut by the US Federal Reserve within the year, leading to a rise in the US dollar index and putting pressure on oil prices. However, concerns about US debt default have eased, and the IEA raised its crude oil demand forecast, attracting some buying support for oil prices on dips.
Investors should pay attention to the US EIA weekly crude oil inventory data on this trading day. Additionally, keep an eye on the preliminary figures of the US April Building Permits, US April Housing Starts, speeches by European Central Bank officials, and news related to the G7 summit.
