PTA Market Sidetracking Is Mainly Market Sentiment.

New York crude oil futures closed down more than 3% on Thursday, smoothing the recent gains, because the impact of the first decline in US crude oil inventories has dissipated for several months, and the focus of the market has returned to the problem of overstock of crude oil and gasoline.

At the same time, the rise in the US dollar is another factor leading to the pressure on crude oil prices.

Usually, the rise in the US dollar will lead to a fall in the price of US dollar denominated commodity futures, because the cost of buying these goods by other investors will be higher.

In the New York Mercantile Exchange, U.S. crude oil futures closed down 1.99 U.S. dollars, or 58.94 U.S. dollars per barrel, or 3.3%.

In the previous trading day, the contract rose more than $2, hitting a high of $62.58 a barrel.

Meanwhile, London Brent crude oil futures in Beihai also fell $2.40, closing at $65.30 a barrel, smoothing the previous week's gains.

Gasoline futures also fell 49 cents to below $2 a barrel, the biggest decline since the 16 trading day.

According to government data released on Wednesday, U.S. crude oil last week.

Reducing nearly 4 million barrels, the first weekly decline since January.

However, the Prime Minister of crude oil remains at a high level of 487 million barrels.

Although demand for gasoline rose in the market last week, and the peak season for us summer driving season has arrived, gasoline stocks are still rising.

Karl Larry, director of Frost&Sullivan's crude oil and natural gas business development, pointed out: "the improvement of gasoline and crude oil products is not as fast as some people expected before, and this is somewhat disappointing, thus failing to support the ever rising trend of crude oil prices". (CarlLarry)

Although the supply of crude oil is still in place

But stronger than expected growth in demand and a drop in US crude oil supply have played a role in boosting oil prices in the past, raising 50% compared with the 6 year lows hit in January.

But at the same time, crude traders pointed out that the physical market was weaker, with tens of millions of barrels of crude oil coming from West Africa, Azerbaijan and Beihai facing difficulties in finding buyers.

"Although the recent weekly drop in US crude oil inventories is a case for oil prices.

But stocks remain at a very high level. "

Harry Gillinkirien, head of commodities market strategist at Bank of Paris, France, said HarryTchilinguirian.

OPEC Member States will hold a conference on output making in Vienna next month, but it is not expected that the organization will make a decision on output adjustment at this meeting.

A senior OPEC official said Wednesday that the group will adhere to the strategy of pursuing market share.

The official told Reuters that OPEC hopes to "bring the major non OPEC oil producing countries to the negotiating table" to help balance the oil market.