Middle East Crude Oil Market

Middle East Crude Oil Market

As the current international oil prices are steadily rising, the demand for crude oil is also Middle East Crude Oil Marketstabilizing, and OPEC will increase its production cuts, it is expected that international oil prices will rise. According to Zhuo Chuang Information's crude oil change rate model, the recalculated domestic reference original change rate is in a positive range, so it is expected that the next round of oil price adjustments will usher in three consecutive increases.

After the news came out, oil prices did not change much, and only the short-term decline showed a narrowing trend. US oil WTI and Brent crude oil futures have reached nearly three and a half years of highs of 7 US dollars and 77 US dollars, respectively, and still maintain a decline of about 0.% in the day.

Since the beginning of this year, the United States has suddenly begun to produce oil wildly, overwhelming OPEC, which has been reducing production. The price of crude oil has also slowed down sharply because of the surge in oil production in the United States. CNPC has mentioned many times before that the main contradiction in the crude oil market this year is the struggle between US oil production and OPEC's production cut. At present, because of the US farce in the Middle East, OPEC may face a period of increased production. Crude oil prices have also fallen back to below 70 US dollars. Many people are speculating that oil prices may be difficult to make a difference in the second half of the year. But a piece of news a few days ago seems to have given oil prices a glimmer of hope.

Kwangrae said in a telephone interview that although OPEC's supply risks, including Iran, are pushing up Brent crude oil prices, Trump continues to limit the price increase of West Texas Intermediate oil WTI, resulting in West Texas The spread between Sri Lankan oil and Brent crude oil spreads.

In the next six months, Russia, Saudi Arabia and other countries in the Arabian Peninsula will need to increase production by 850,000 barrels per day to offset the expected production cuts in Iran and Venezuela and prevent further expansion of the crude oil market supply gap in the second half of the year. If the U.S. government imposes sanctions on Iran and requires a substantial reduction in the purchase of Iranian crude oil, the above-mentioned increase in output will further increase.

According to China Oil.com, it can be said that Iran’s increase in the price of Asian crude oil at this time can be said to be the next step. Because the US sanctions are about to come, Iran’s crude oil output will inevitably be restricted, and in the case of a decline in output, it will further increase. The price Middle East Crude Oil Marketof crude oil will undoubtedly lead to strong dissatisfaction among crude oil buyers. Although as Iran, the decline in production needs to be compensated by raising the price, can the buyers accept this? This is the result of Saudi Arabia’s previous attempts to increase the price. As can be seen.

However, the Oxford Energy Institute said that if global oil demand unexpectedly declines, OPEC's choice will become very severe: OPEC will either decide to reduce production or switch to a higher output strategy. However, both of these options involve huge risks. This reflects that OPEC finds itself in a delicate situation.

Bank of America Merrill Lynch said tight market conditions may push Brent oil prices to $90 per barrel in the second quarter of 209. However, the agency warned that there are uncertainties in the market, because the impact of the sanctions announced by the United States on Iran is not clear, and the trade disputes between the United States and other major economies will gradually have an impact.