Earlier, due to the termination of investment in Iran by some European crude oil companies and market concerns over the weekend’s Venezuelan election or incurring Crude oil price inventoryfurther sanctions by the United States, U.S. oil broke through $72 and hit a new high of $7/barrel, while Brent crude oil Since May 204, it has closed above $80 again. U.S. oil is currently trading at $76, with intraday highs and lows at $768 and $75.
On Monday, the U.S. Department of Energy stated that it will release 0 million barrels of strategic oil storage for bidding before the United States imposes sanctions on Iran. The delivery period will be from 0 to 0. The delivery time indicates that the U.S. government hopes to cushion the re-implementation of Iranian oil customers. Any market impact from sanctions.
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.
This week, because the United States stated that it would impose the strongest sanctions on Iran, the market’s concerns about the situation in the Middle East returned again. Panic helped the oil price to break through the 72 pressure level. At the same time, the U.S. index also showed a trend of rising and falling. With the help of multi-directional positives, the price of crude oil reached a new high, and by Tuesday morning, the market even broke through to $78 again. I thought that the bulls could continue to continue. However, at the end of the market, there was a wave of high diving, which directly vomited all the gains in the day. , Fell directly to 72 US dollars, and after the opening on Wednesday, the decline seems to have a further expanding trend. What happened last night?
Bloomberg said that Brent crude oil prices must rise to $95 on the current basis for Saudi Arabia to balance its budget deficit. However, Bloomberg analysts also said that the problem of oversupply in the international oil market is serious, and demand in the global oil market continues to decline. The expectation that oil prices will rise to $95 to balance the budget deficit is more aggressive. He also pointed out that even if Saudi Arabia’s oil revenue hits a five-year high, it is still difficult to get rid of the sixth budget deficit.
Cartel organization, that is, monopoly interest alliance. This kind of alliance usually occurs when a small number of resources are fully controlled by several companies. In order to avoid the overall profit decline caused by excessive competition, companies that produce similar products will form an alliance to control the output and price of the product through certain agreements or regulations. . According to US antitrust lawCrude oil price inventorys, cartels are illegal.