The largest international crude oil producer

The largest international crude oil producer

On May 5, international crude oil production cuts and the tensions in the Middle East supported oil prices, making oil prices positive.The largest international crude oil producer However, OPEC expects that shale oil will face resistance in the future. In terms of its ability to transport from inland sources, the rapidly growing US shale oil production is increasingly facing high cost and logistics constraints, OPEC said.

In the same week, US gasoline inventories increased by 900,000 barrels, which occurred before the US Memorial Day holiday, which usually marks the beginning of the summer driving season. According to data from the U.S. Energy Information Administration, the oil processed by the refinery dropped by 7,000 barrels per day to 660,000 barrels per day, a decrease of 8% over the same period last year.

As Western companies have left Iran, the National Iranian Oil Company said on Monday that once sanctions are restarted, Iranian oil exports may fall by 500,000 barrels per day. Said Hussein, Chief Market Strategist, FXTM

On Monday, May 4 in Asia, the US oil market saw a rapid decline after a slight increase. Earlier, due to the continued increase in the number of wells in the United States and a new high in U.S. oil production, oil prices had a wave of decline. Currently U.S. oil is trading at $70.46 per barrel, with intraday highs and lows at $70.74 and $70. .

The sharp increase in oil prices this week was also due to supply disruptions in Canada’s largest oil production base and restrictions on Libya’s crude oil exports. In addition, market concerns about Trump cutting off Iran’s capital flows were one of the main drivers of the oil price rebound.

A well-known financial blog, Zero Hedge, stated that after expressing expectations for oil prices in Saudi Arabia, WTI prices rebounded above US$69 today. However, after crude oil inventories unexpectedly increased by 250,000 bThe largest international crude oil producerarrels, the gains narrowed.

Then the Fed raised interest rates. Last week's non-agricultural data performed well, sweeping away the two upset declines before. The recent strong rise in the U.S. dollar seems to imply that the Fed's rate hike is unstoppable. The probability of a rate hike in June has exceeded 90%. At present, it is still rising even further. If the interest rate hikes land, the dollar will inevitably usher in a rise again, which will be another powerful blow to crude oil prices.

In addition to trading in shopping malls and vegetable markets, these things can also be traded in financial markets in a virtual way. Why do you say virtual? Because suppose you buy a barrel of oil in the financial market, but in fact you did not buy one. A barrel of oil, but a barrel of oil in name. Of course, if you wish, you can also apply for delivery of physical gasoline and diesel at any time.