Previously, US President Trump said on Twitter that King Salman of Saudi Arabia agreed to inMiddle East Crude Oil Marketcrease oil production by up to 2 million barrels per day, which caused oil prices to gap and open lower. However, with the interruption of Libyan crude oil supply, this made oil prices again. There was a rebound and a new high above $75.
In the crude oil market this Tuesday, when oil prices fell below US$65, they rebounded strongly during the U.S. session. Even if API inventories were subsequently flat, crude oil prices eventually stabilized above US$65 temporarily, and in early trading on Wednesday The market even approached $66 at one time. However, as the market entered the European and American time period, the market bulls were still short-lived, and oil prices returned to the trend of continuous decline. More importantly, the sharp increase in EIA inventory data resulted in a sharply negative effect on crude oil prices. It fell below $65 at one time. Had it not been for the Iranian side to release some positive news to boost the market, the market would probably have plummeted. But even so, the current $65 line is still precarious.
After the news, the international Brent oil price dropped 5 US dollars or 98% to 744 US dollars per barrel last Friday; U.S. oil WTI fell 8 US dollars or 4% to 688 US dollars per barrel. Oil cloth basically wiped out the gains of the past three weeks, and WTI recorded the largest single-day percentage drop since July 207.
On Wednesday June 20th, due to the strong expectations of OPEC's production increase and Russia's eagerness to increase production, the EIA crude oil inventory fell sharply, and international oil prices rose and fell. US oil futures for July were 622 US dollars, up 5 US dollars per barrel, Brent August futures were 774 US dollars, down 0.4 US dollars per barrel, and SC September futures were 462 yuan, up 5 yuan per barrel.
Second-hand data sources show that monthly OPEC oil production further reduced by 540,000 barrels/day to 002 million barrels/day, still thanks to Saudi Arabia’s vigorous production cuts. The total production cut implementation rate of the OPEC member states participating in the production cuts has reached 55%.
More importantly, international crude oil prMiddle East Crude Oil Marketices are rising, but the increase in downstream diesel prices is obviously lower than the increase in oil distribution during the same period. If things go on like this, the enthusiasm of refiners will be suppressed by low prices, which will further affect demand in the crude oil market.
The US disarmament ambassador in Europe said that he believes Iran has the hope of reaching an agreement with the European Union acceptable to US President Trump. This may to a certain extent alleviate the market's concerns about the prospects of the Middle East situation, triggering a short-term dive in the price of gold.
Therefore, even if US shale oil drillers are suffering from pipeline bottlenecks, worker shortages and investors demanding higher returns, the world still has production capacity to cope with increasing oil demand. One thing to remember is that the increase in oil demand is only a forecast and has not yet become a reality. Therefore, the situation can change, not because of the emergence of electric vehicles. In fact, there are many factors that can influence oil demand.