The decline in crude oil prices has been attributed to various factors including the UK referendum to leave the European Union, reduced demand for crude oil and alleviCurrent wti crude oil priceating concerns about supply disruptions. In fact, momentum trading with traders chasing rising prices is an important factor in the increase in crude oil prices between January and May. Once the momentum is broken, it is likely that prices will pull back, because traders will try to lock in past gains.
Although we speculate that Trump’s tearing up of the Iran nuclear agreement in May will bring huge benefits to crude oil prices, there is still a short period of time after all, and during this time, the continued sharp rise of the U.S. index may temporarily limit the rise in crude oil prices. .
At the same time, the gas station discount rate in some areas in China is amazing. For example, in Guangdong, Zhejiang, Fujian and other provinces, some gas station gasoline discount rates can reach more than RMB yuan/liter, and even some gas stations have a discount rate of 2 yuan/liter.
The weekly international benchmark index broke through the $80 mark for the first time since January 204, but it almost gave up all the gains of the day in the afternoon trading. Investors expect that oil prices will rise further at least in the short term due to supply concerns. Brent crude oil has risen 7% since the beginning of the year.
Recently, as the news that the United States will impose sanctions on Iran and Venezuela has spread more and more, many people have begun to worry about how the huge gap between these two countries will be dealt with. Some people think that the United States will take the opportunity to enter the market to take over this gap. But there are also speculations that OPEC and Russia may abandon production cuts and choose to increase production to fill the gap, because according to previous data, OPEC's production cuts have almost reaped great results, and stopping production cuts may really be a choice now.
As a result, cheap U.S. crude oil makes it particularly attractive to overseas buyers. The price difference between WTI and Brent crude oil is $8/barrel enough to cover the transportation cost of American oil to Asia. After reachingCurrent wti crude oil price a record high of nearly 25 million barrels in May, oil exports from the United States to Asia may hit a record high in July. There are reports that close to zero large ships are lining up in the United States to load oil and then set off for Asia. Each tanker can carry 2 million barrels of crude oil.
On the other hand, Venezuela is currently experiencing an economic crisis. Although the country was one of the world's largest oil powers before, 20 years later, the country's recoverable oil has fallen sharply. If these 5 billion barrels of oil can be obtained, not only can the problem of declining oil reserves be improved, but the economic crisis in Venezuela can also be alleviated. Therefore, Venezuela will never give up this big cake. It is basically an unrealistic idea that Exxon Mobil wants to exploit this oil field.