During the Asian market on Tuesday (August 14), U.S. oil prices strengthened.

Oil prices experienced a huge shock on Monday, rebounding again after falling sharply, recovering most of the day's losses.

Earlier data showed that crude oil inventories at the U.S. crude delivery center rose in the latest week, exacerbating investor concerns that troubled emerging markets and trade tensions will weaken the outlook for fuel demand.

Crude stockpiles at Cushing have been declining, in part due to the shutdown of a Canadian oil processing plant, reducing crude flows into the hub.

Canada's Syncrude processing plant has begun increasing light oil production and is expected to resume full production in September.

As of now, U.S. oil is currently trading at US$67.53/barrel, an increase of 0.49%; Brent crude oil is currently trading at US$72.91/barrel, an increase of 0.41%.

The continued strength of the U.S. dollar is negative for oil prices. International crude oil prices have been caught in a long-short tug of war over the past month. Amid the Iranian sanctions and trade war suspicions, the future prospects remain uncertain.

The U.S. dollar index has shown further strength in recent days, which may put additional pressure on oil prices in the future.

Generally speaking, the price trend of commodities priced in U.S. dollars, including oil, is generally opposite to that of the U.S. dollar index, so the continued surge of the U.S. dollar index is obviously detrimental to the outlook for oil prices.

The outlook for crude oil demand is expected to be under additional pressure. At the same time, the initiator of the rise in the US dollar is the sudden economic panic in many emerging market economies represented by Turkey. If emerging market economies are the main force in increasing oil demand

Trapped in a quagmire, the outlook for crude oil demand will be additionally pressured.

Such a bearish outlook seems to have outweighed the potential benefits of Iran being banned from exporting oil due to sanctions, so oil prices jumped during the European and American hours on Monday.

Although oil prices have recovered some of their losses amid lingering supply concerns, it is no longer appropriate to be overly bullish in the market outlook.

U.S. Commodity Futures Trading Commission (CFTC) data shows that hedge funds and other money managers reduced their bullish positions on WTI crude oil futures and options in the week ended August 7.

That's fueling concerns that the deepening trade war between the United States, China and the European Union will squeeze business activity in the world's largest economy.

Turkey is a relatively small oil consumer, consuming less than 1 million barrels per day and accounting for about 1% of global demand.

However, concerns about contagion are fueling risk aversion.

The OEPC monthly report is overall bearish. OPEC expects that demand for its crude oil will decrease next year as competitors increase production.

The group also said major oil exporter Saudi Arabia has cut production to avoid another supply glut.

OPEC's monthly report showed that crude oil production increased by 40,000 barrels per day in July to 32.323 million barrels per day.

The monthly report lowered the average daily global crude oil demand growth in 2019 by 20,000 barrels to 1.4 million barrels, while increasing the non-OPEC daily average crude oil supply growth by 30,000 barrels to 2.13 million barrels.

From the demand side, the OPEC crude oil demand forecast in 2019 is lowered by 130,000 barrels/day to 32.05 million barrels/day; the growth rate of global crude oil demand in 2019 is lowered to 1.43 million barrels/day, from the previous value of 1.45 million barrels/day.

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The non-OPEC crude oil supply growth forecast for 2019 has been raised to 2.13 million barrels per day, from the previous value of 2.1 million barrels per day.

OPEC lowered OPEC and global demand growth, and also raised its forecast for supply growth.

Pay attention to API data in the early morning. API crude oil inventory data will be released at 4:30 am Beijing time on Wednesday. The previous value was a decrease of 6 million barrels per day.

The intensification of market supply panic has caused oil prices to fall under pressure. If API data this week once again shows an increase in inventories, oil prices may once again trend downward.

In addition, data from the U.S. energy intelligence agency Genscape showed that as of the week of August 10, WTI crude oil inventories at the Cushing, Oklahoma, delivery crude oil center increased by approximately 1.7 million barrels, curbing the previous downward trend of Cushing crude oil inventories.

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FinanceEasy software shows that as of 10:12 Beijing time on August 14, U.S. WTI crude oil is currently trading at $67.47 per barrel.