Date of trading crude oil contract
Trump complained on two Twitter last week thDate of trading crude oil contractat the recent surge in oil prices to multi-year highs should be blamed on OPEC, which is dominated by the Middle East. Zangane pointed out that it was Trump who imposed sanctions on Iran and Venezuela that brought difficulties to the oil market.
The United States started to impose new sanctions on Iran last week, and will also impose sanctions on the country’s oil industry starting this month. Although the US sanctions against Iran have excluded crude oil from the list as expected, if Iran uses the blockade of the Strait of Hormoz as a counterattack against the US, it may cause oil prices to rise sharply.
It is unclear how much the US sanctions will hit Iran’s oil industry. Much depends on how other major oil-consuming countries respond to Washington’s actions against Iran, which will take effect this month.
In this election, the coalition of the populist Shia priest Sadr, who has very tense relations with the United States, unexpectedly won. The coalition won 54 seats in the 29-seat parliament, so it needs to form a coalition to govern the country. Sadr himself cannot be appointed as prime minister because he did not participate in the election. Amiri, the leader of the Iranian-backed militia group, ranked first, while Abadi’s coalition ranked third.
Since the beginning of the year, international oil prices have soared by more than 8%. Among them, Brent crude oil has risen by about 2% this year, and once broke through the $86 mark, the highest since August 204. US WTI crude oil rose 5% this year, hitting a maximum of US$76 per barrel, which is also the highest level in four years. At present, most market participants predict that international oil prices will rise further, and they are expected to hit the $00 price level next year.
Watkins said: This is a more Date of trading crude oil contractpolitical issue that may shock the market. He further said: This is an uncertain situation, because if sanctions do happen, oil will disappear from the market.
The National Bureau of Statistics announced on Thursday that the added value of industrial enterprises above designated size in May increased by 8% year-on-year, lower than the estimated median value of 0%, and the total retail sales of consumer goods increased by 5% year-on-year, significantly lower than the estimated median value of 6%. -In May, fixed asset investment increased by% year-on-year, which was lower than the estimated median value of 0%.
In addition, gasoline inventories increased by 20,000 barrels last week, and analysts expect an increase of 280,000 barrels. At the same time, refined oil inventories increased by 750,000 barrels last week, and analysts estimated an increase of 60,000 barrels. More data show that US crude oil imports fell by 60,000 barrels per day to 800,000 barrels per day last week. After the API data was released, the gains of the US and Bulk oil pans expanded slightly.
In addition, Venezuela's oil tanker transportation is also in trouble. Last month, after an international court ruling, ConocoPhillips of the United States will take over the assets of Venezuela’s state-owned oil company in the Caribbean. These assets are worth US$2 billion. ConocoPhillips aims to obtain oil facilities on the islands of Bonaire, Curaçao and Aruba outside Venezuela, which accounted for about a quarter of Venezuelan oil exports last year.
Goldman Sachs analysts believe that the impact of increased production on oil prices may be limited. Because the specific increase in production has not yet been determined. Even with an increase in output of about 0 million barrels per day, these increases will only offset those involuntary reductions in production, and OPEC will still limit production as a whole. Venezuela's continued supply interruption and potential Iranian crude exports are also likely to offset some of the increased production. Moreover, the process of increasing production will be implemented gradually and will not cause a big impact on the market. The market will still be in a state of insufficient supply in the third quarter of this year.