Abstract: Due to higher oil prices, consumers around the world began to complain. Therefore, OPEC and Russia agreed to increase crude oil production by one million barrels a day to stop the rise in oil prices. But after two months, a different picture appeared in the market: China crude oil contractdemand in Asia slowed down, and a long brewing price war between Saudi Arabia and Iran was launched.
Moreover, although Russia has promised to reduce production, it will take two months to implement this agreement. The current international oil prices will not change much. Coupled with the soaring domestic crude oil imports, domestic refined oil prices may not drop much on February 4, but at least they will not rise.
The continuous rise in the international oil market since the beginning of the month came to a halt in the production increase remarks made by Saudi Arabia and Russia, which are parties to the production reduction agreement. International oil prices have entered a downward channel since late May. As of early June, European and American crude oil futures prices have fallen to 765 US dollars. /Barrel runs near the price. In addition to the expected increase or decrease in oil-producing countries, the steady recovery of shale oil in the United States and continued high oil output are also one of the negative factors that suppress the trend of international crude oil.
The Iranian nuclear issue affects production release: the future geopolitical focus will remain on Syria and the Iran behind it. The new round of sanctions will significantly slow down Iran’s capacity release. The United States has independent energy and rising oil prices will strengthen its resource endowments, while Saudi Arabia and Russia’s finances It is highly dependent on oil prices and has a strong demand for boosting demand. The major oil-producing countries in the world are forming a synergy to push oil prices up.
However, the release time of the two reports was only two weeks later than the time when the production reduction agreement officially took effect. Speculators also began to show suspicion. The CFTC position report shows that hedge funds and fund managers reduced their net long positions in US crude oil futures and options for the first time in five weeks as of the week of the month.
But behind the soaring oil price is by no means as simple as a natural disaster. Bloomberg reported that due to U.S. sanctions, Iran's crude oil exports, as OPEC's third-larChina crude oil contractgest oil supplier, were interrupted, making U.S. crude oil inventories their lowest point in a year and a half. Nick, an analyst at Tortoise, who manages $6 billion in energy-related assets