OPEC oil ministers will meet on Friday to consider a substantial increase in oil production this year. The issue was proposed by Saudi Arabia and Russia, but was opposed by member states such as Algeria, Iran, Iraq, and Venezuela. The United States also recently imposed new sanctions oNew York Mercantile Exchange Crude Oil Pricen the Iranian oil industry, which is expected to interfere with the flow of oil trade.
Since spot crude oil tested a high of 50 dollars in early June, it remained volatile below 50 dollars for four consecutive weeks. The long-short competition was fierce and there was no clear direction. Until the eve of the Brexit referendum, the market panic significantly lowered crude oil prices and broke the previous period. Sorting out the support, pulling down the center of gravity of the overall trend, and entering a gentle downward channel. The upward trend in the first half of the year is temporarily terminated.
In April, domestic temperatures began to pick up. The winter heating season in northern China has basically eliminated the limited production season. Downstream factories have fully resumed work. Together with the increase in operating rates of outdoor infrastructure projects and industrial and mining enterprises, rising commodity prices have promoted the gradual activity of the logistics and transportation industry. During the spring plowing period, agricultural oil consumption increased, and at the same time, the demand for air transportation during the holidays was also relatively active.
The International Energy Agency's IEA said in its latest monthly report released on Wednesday that the geopolitics of Iran and Venezuela may cause oil supply disruptions. The IEA warned that any supply gap could cause oil prices to soar.
Compared with the crazy increase in crude oil prices last week, the crude oil market this week is not inferior. As the situation in the Middle East is cooling down, crude oil inventories once again contributed to helping crude oil successfully win the 68 US dollar mark, and the further cooling of Sino-US trade also allowed The price of crude oil once again hit a new high of US$656. However, the market finally closed down on Thursday and Friday. Although the decline of the second consecutive decline did not match, it at least calmed the market temporarily. Although the current oil price is only one step away from US$70, In fact, there are still many hidden dangers in the crude oil market outlook. Some of these hidden dangers may cause oil prices to rise again, but some may also bring fatal disadvantages to the crude oil market.
Trump has set a deadline of May 2 for Britain, France, and Germany, to amend the defects of the Iran nuclear agreement before the deadline, otherwise he will re-impose sanctions. Some analysNew York Mercantile Exchange Crude Oil Pricets believe that the market is currently extremely sensitive to the Iranian nuclear issue.
Crude oil investment is currently a relatively hot investment project in the market. Crude oil includes spot crude oil and futures crude oil. Then some people will ask, what is the difference between spot crude oil and futures crude oil? Below, the editor of China Petroleum Finance Network will introduce to you. Different mechanisms for crude oil futures: there is a short-selling mechanism, two-way trading can be profitable, and there are profit opportunities in the rising and falling market. T+0 trading system. Positions can be opened and closed multiple times on the same day, but there is a delivery date, and delivery must be made at the end of the day, otherwise the position will be forcibly closed or delivered by things. At the same time, the position will be forcibly closed when the margin is insufficient. Spot crude oil: There is a short-selling mechanism, and two-way trading can be profitable. There are profit opportunities in the rising and falling market. T+0 trading system. You can open and close positions multiple times on the same day, with no delivery restrictions, and unlimited holdings. But when the margin is insufficient, the position will be forcibly closed. Different funds Spot crude oil: margin trading, leverage ranging from 20 to times. Crude oil futures: margin trading, leverage ranging from 8 to 5 times. Trading time is different. Spot crude oil: Following the opening time of Europe and America, it is divided into summer time and winter time. Due to the time difference, the current domestic trading time is from 07:00 to 05:00 Beijing time on each trading day, and from 05:00 to 07:00 the next morning. The settlement time for the exchange to stop trading, the month begins to follow the winter time trading time of the European and American markets, and the opening and closing are delayed by one hour, that is, 22 consecutive hours of trading. It can be entered at any time of the market, and the continuity of prices is more advantageous than futures. The most active trading period is between 20:00 and 02:00. Crude oil futures: trading hours are from 9:00 am to :0 am
In addition, Venezuela is deeply mired in debt crisis and domestic political turmoil. In April, the inflation rate reached 779%. According to EIA statistics, Venezuela’s crude oil reserves in 206 were 90.9 billion barrels, ranking the world’s first effective production capacity of about 2.6 million barrels per day. However, since the beginning of 207, crude oil production has declined from 2 million barrels per day. Month, only 460,000 barrels per day. On May 20, President Maduro won another six-year term. On May 2, the United States announced additional economic sanctions against it, prohibiting American citizens and permanent residents in the United States from purchasing any debts related to Venezuelan state-owned enterprises, and preventing the Maduro government from cashing out National assets such as crude oil alleviated the economic crisis.
According to the editor, Trump's dream of lowering oil prices is unlikely to come true. Once the US crude oil sanctions on Iran take effect, there will be a vacancy in global crude oil supply. At present, OPEC and Russia are unwilling to increase production. The US alone cannot make up for this vacancy. Oil prices will still rise.