Crude oil market trends

Crude oil market trends

In most cases, the market is basically in a state of valueless volatility. If we pay attention to any situation, we will not only be very tired and tired, but also lose our sensitivity to market changCrude oil market trendses.

These manufacturers do this for two reasons. The first is that they hope to take advantage of the short-term rise in oil prices to lock in future income to pay for oil drilling and production costs. In West Texas, the cost of oil production may be $0 per barrel or less. If hedged, these companies not only hedge the risk of falling oil prices in the future, but also get good profits. However, the price of doing so is to give up the profits that may come from higher oil prices.

When it comes to the risk of downward oil prices, the World Bank stated that when the compliance of the production reduction agreement is weakened or completely terminated, Libya and Nigeria's crude oil production has increased, or the US shale oil production growth rate When higher than expected, expectations for oil prices will weaken.

The well-known financial blog zero-hedging evaluation EIA data stated that although the API data released earlier has boosted oil prices, the sustainability is not strong. The data released by EIA showed that the increase in US crude oil inventories far exceeded expectations, causing oil prices to fall. Some analysts pointed out that the crude oil price differential may push refineries in central North America and the Gulf Coast to increase capacity utilization, which will slow down the consumption of refined oil inventories.

So far, Kuwait and the UAE have remained largely silent, but they may support Saudi Arabia’s proposal to gradually increase production in some way. Before the OPEC meeting, it was not uncommon for a strong statement. This week's meeting will last three days. First, the Joint Ministerial Oversight Committee will meet on Thursday to evaluate the implementation of production cuts and productivity. OPEC will hold a meeting of all ministers on Friday, and non-OPEC oil ministers will participate in a joint meeting on Saturday.

This is not only a good price, but also an excellent deaCrude oil market trendsl, especially for those refiners who have just completed summer maintenance and planning, because they are currently continuing to increase their imports, especially as the winter comes and local fuel demand increases .

However, after a week, fund managers began to retreat, and at the same time, it was accompanied by a fall in oil prices. Just four weeks later, the number of long positions in WTI crude oil futures was reduced by half. WTI crude oil once rebounded to a high of $548 on February 2, 207, and then fell back to the level of $47 at the end of the month.

In the short term, crude oil futures will exhibit four characteristics: First, the number of participants and the degree of participation will be higher than domestic participants, non-commercial traders higher than commercial traders, and individual participants. The phenomenon of institutional participants; the second is that the trading volume is showing a rapid growth trend; the third is that it is difficult to form an independent crude oil futures price. The expected judgment of market participants on the price will anchor international crude oil futures such as Brent and WTI. Deep resonance; fourth, changes in the exchange rate of RMB against the US dollar will affect crude oil futures prices. In the future, my country's crude oil futures will improve transaction quality, price quality and operational quality, and move towards the goal of Asian pricing benchmarks.