Distribution of crude oil contract revenue
1/19/2021

Distribution of crude oil contract revenue

By Crude oil market dynamics

Oil prices are too high and OPEC is here again, which is not good! Trump launched another offensive against OPEC overnight. Since taking office, Trump has sent three tweets related to oil prices. Two tweets specifically targeting oil prices appeDistribution of crude oil contract revenueared in the second quarter of this year.

Under the bombardment of heavy quotations such as the Special Finance Conference and OPEC meetings, crude oil investors should also pay attention to the fact that two major data will be announced tonight, and the volatility of crude oil prices will also be broken. The future of oil prices will be announced soon. Investors are expected to pay close attention.

From a fundamental point of view, the reason for the recent recovery in oil prices is the preliminary agreement reached last week to limit production, which provides strong support for crude oil. The trend of the crude oil trend requires attention to the final implementation results of this agreement and OPEC before the implementation of specific production restrictions. Various dynamics in oil-producing countries. However, in terms of supply and demand, Russian crude oil production continued to increase, Iran once again pushed crude oil production to the pre-sanction standard of 4 million barrels per day, India increased its annual crude oil production to 25 million tons, and the market’s counterattack against U.S. shale oil The subsequent impact on expectations has all constituted substantial pressure on rising oil prices.

In summary, OPEC may slightly increase production at the Friday meeting. Given that the market has largely digested this expectation, it is expected that the result will not seriously depress oil prices, and oil prices may rebound higher before the end of the year.

Today's crude oil price opened with a shocking downward trend. The opening price was reported at 622 US dollars, and the shock fell by 0.24 US dollars, a decrease of 0.4%. It is now at 67 US dollars per barrel. Although crude oil prices opened downward, technically speaking, today's oil price upward channel is intact, and there is still the possibility of a sharp rise in the market outlook.

Brent crude oil futures may drop to the support level of US$706 per barrel, and it is likely to fall below this level and the next support level of US$727 is further down. The failure of oil prices to break through a downtrend line, coupled with Tuesday's decline, clearly suggests that the doDistribution of crude oil contract revenuewntrend starting at $849 remains unchanged.

Trump's withdrawal from the Iran nuclear agreement detonated fears about supply shortages, and selling expectations boosted crude oil prices in the short term. Trump's withdrawal from the Iran nuclear agreement, which was reached at the end of 205, increased the risk of conflict in the Middle East and brought uncertainty to global oil supply at a time when the crude oil market was already tight.

Citigroup commodity analysts had previously predicted that Russia’s idle production capacity was 408,000 barrels per day, accounting for 4% of its total production capacity of 0 million barrels per day. Although far less than Saudi Arabia’s 220,000 barrels/day of idle capacity, this figure still accounts for a considerable part of Russia’s total production capacity.

The original goal of the production reduction agreement was to reduce oil inventories in industrialized countries to a five-year average. Nevertheless, as several major oil producing countries in the world are working hard to achieve their initial goals, there is little sign that Saudi Arabia will want to end the production reduction agreement.