Core Viewpoint - The article discusses the recent decline in U.S. crude oil and fuel inventories, the impact of a weak dollar, and the cautious market sentiment regarding the Iran-Israel ceasefire, highlighting the interplay between market fundamentals and geopolitical risks [1][2][3] Inventory and Demand - U.S. crude oil inventories decreased by 5.8 million barrels, significantly exceeding analysts' expectations of a 797,000-barrel drop, indicating tightening global energy supply concerns [1][3] - Gasoline demand in the U.S. has reached 9.2 million barrels per day, a 5% increase compared to the same period last year, reflecting strong recovery in end-user consumption [2][3] Geopolitical Factors - The Saudi Energy Minister hinted at the possibility of extending production cuts, while Russia's Deputy Prime Minister stated that the global market is "basically balanced," adding uncertainty to oil price trends [2] - The market remains cautious about the upcoming U.S.-Iran nuclear negotiations, despite the recent ceasefire between Iran and Israel, which has reduced the risk of disruptions in the Strait of Hormuz [3] Market Dynamics - The dollar index has fallen to a three-year low, with expectations of interest rate cuts supporting oil prices from a currency valuation perspective [3] - The current oil price dynamics reflect a transition from being primarily influenced by geopolitical factors to being driven by supply and demand fundamentals, although this transition may be disrupted by the OPEC meeting scheduled for July 6 [3]