OPEC+ seven countries have agreed in principle to increase production quotas by about 188,000 barrels per day in June.
Currently, the total quota for these seven OPEC+ countries in May is about 30.258 million barrels per day. If the increase in June is realized, the theoretical quota will rise to about 30.446 million barrels per day.
For WTI, while the increase of 188,000 barrels per day is not large, it does have an impact on market expectations.
At present, the biggest support for WTI still comes from the war premium brought by the situation in the Strait of Hormuz and Iran. If the subsequent negotiations with Iran continue to progress, and shipping through Hormuz gradually resumes, coupled with the OPEC+ production increase taking effect, the difficulty of WTI maintaining above 100 dollars will increase.
It is very likely that the price of WTI will fall below 100 dollars on Monday.
Continue to hold short positions on WTI at high levels.
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