Crude oil market observation
1/11/2021

Crude oil market observation

By Crude oil market dynamics

Israeli Prime Minister Netanyahu praised Trump for his tough stance on Iran on Tuesday and expressed full support for his withdrawal decision. He said that the nuclear agreement was originally the source of the disaster.Crude oil market observation Israel opposed the agreement from the very beginning, because instead of preventing Iran from developing nuclear weapons, it paved the way for Iran to a complete nuclear weapons arsenal.

According to data released by Hughes on Friday, May 4th, as of the week of May 4th, the number of active oil wells in the United States increased by 9 to 84, recording growth for five consecutive weeks and hitting a new monthly high in 205 years. More data shows that the total number of active oil and gas wells in the United States increased to 02 in the week ending May 4. The U.S. Energy Information Administration EIA expects that crude oil production in the Permian Basin in May will increase to a record high of nearly 200,000 barrels per day, accounting for about 30% of total production.

Crude oil prices failed to attack the 70 US dollar mark. Today, the OPEC ministerial meeting will be held. If the meeting reveals the signal to extend the production cut, the international crude oil price is expected to rise above the 70 US dollar mark. On the contrary, if bad news is revealed, the crude oil price will close on the week. A decline may be recorded.

The sharp rise in oil prices has stimulated the nerves of Saudi Arabia and Russia. Wall Street has previously mentioned that the international crude oil market is quietly undergoing a reshuffle. One of the signs is that in the European market, US crude oil is actively seizing the share of Russia and OPEC and other Middle Eastern countries.

Judging from the crude oil trends of the two days, although the war in Syria did not further ignite the market, the long momentum accumulated by the surge in crude oil prices last week could still bring strong long support to oil prices this week. At the same time, the United States and Russia And Iran is also in a state of ready to go, which may become the key to the outbreak of market sentiment in the next stage. Although there was a high correction in oil prices on Monday, it was mentioned before that, to a large extent, the market's profit was taken away, and the further decline in stocks on Tuesday helped the crude oil stabilize its current trend. A wave of bottoming out on Tuesday shows that crude oil is still able to maintain a certain amount of bullish power to maintain oil prices at a relatively high point. Perhaps it is still a little bit weaker to make further new highs, but at least it can maintain the previous high and wait for the next wave of good entry. Therefore, for this week's crude oil trend, China Oil.com believes that before the situation further erupts, the market should remain at around 67 US dollars and continue to fluctuate. Waiting for the latest market news in a state of steady growth.

China Oil News, May, The price of crude oil fluctuated greatly this week. The price of crude oil fell sCrude oil market observationharply overnight and then rebounded. In addition, Saudi Arabia and other countries intend to delay the OPEC production reduction agreement to the end of 208. Does this mean that today's oil prices can continue to rise in the long-term?

Judging from these circumstances, OPEC is facing a crisis of dissolution. Once it is sued for antitrust, it will force the differences between OPEC oil-producing countries to aggravate, which will directly lead to a decline in the execution of production cuts and affect the balance of supply and demand. At the same time, the continued increase in shale oil production in the United States and the slowdown in global economic growth have led to weak oil market demand, which will further test pressure on international oil prices. In such an environment, it is difficult for oil prices not to fall.