US President Trump announced that he has cancelled the historic summit with North Korean leader Kim Jong Un in Singapore scheduled for next month. The summit was originally scheduled to be held on June 2 and will be the first face-to-face meeting between an incumbent US president and a North Korean leader. The news came as North Korea was demonstrating its plan to dismantle a nuclear test site, but it was also after the North Korean governCrude oil spot price ratioment made some sharp remarks on the denuclearization requirements of the United States. In recent days, people’s doubts about whether this summit can take place have increased. Prior to this, North Korea suddenly cancelled talks with South Korea because they were angry at the joint military exercise between North Korea and the United States. This puts pressure on risky assets such as crude oil.
Iran had previously threatened to block the Strait of Hormuz. Analysts said that although the United States has troops stationed there, it is difficult for Iran to block the strait, but the deteriorating situation between Iran and the United States means that the flow and transportation of crude oil is at great risk.
Although Iran’s exports have fallen by nearly 40% since April, the International Energy Agency IEA stated that OPEC must still increase production to meet strong global demand growth. IEA Director Birol said in an interview that Iran’s output is expected to fall further, but the extent will depend on negotiations between the United States and countries that may seek exemptions.
To a certain extent, due to the involuntary decline in Venezuelan output, OPEC's performance on the agreement has exceeded expectations. In theory, Saudi Arabia and other major OPEC oil-producing countries can increase oil supplies, but they have not yet done so.
US oil service company Baker Hughes released data on Friday, June Day, showing that as of the week of June Day, the number of active oil drilling in the United States increased by 2 to 86, which has recorded growth for 8 consecutive weeks, setting a new monthly high in 205 years. .
And if the international oil price falls below US$45, is it still far from the US$40 mark below? Faced with the pressure of oversupply, OPEC oil producing countries cannot solve the problem. Russia and the United States compete in production, which provides the basic conditions for the continued dCrude oil spot price ratioecline in oil prices. If things go on like this, it is expected that oil prices are more likely to set a record low point and fall to near $0.
Tonight, crude oil prices will not only usher in EIA inventories, but also the release of heavy data such as ADP small non-agricultural and Fed resolutions. Today, oil prices are likely to have a big market, or it is expected to stop falling and rebound to return to 69 US dollars. However, given that API inventories exceed Expected to increase, oil price market outlook risk is bearish.
The first is the holding of the special gold meeting. Trump and Kim Jong-un will finally meet on the 2nd. However, there have been remarks that do not expect the outcome of this meeting, suggesting that the situation in North Korea may not develop as expected. This time the two sides did not reach a consensus view that the situation in North Korea may still become a huge market unstable factor in the future, and changes in the situation in North Korea have a huge impact on risk assets such as crude oil.
This week, U.S. Secretary of Energy Rick Perry will meet with Saudi Minister of Energy, Industry and Minerals Falih and Russian Minister of Energy Alexander Novak to discuss increasing the crude oil production of Saudi Arabia and Russia in an attempt to offset the restart of the United States this month. The impact on international oil prices after the sanctions on Iranian oil exports. According to the arrangement, Perry will meet with Falih in Washington on the 0th and Novak in Moscow on the day. Therefore, it is difficult for the crude oil bulls to get out of the unilaterally rising independent market at least before the midterm elections.