It turned out that with the long-term disrepair of Venezuela's domestic crude oil facilities, in addition to the declNew York Stock Exchange crude oil priceine in its crude oil output, the quality of crude oil is also declining, which does not meet the requirements of most customers. However, Venezuelan oil is high-sulfur crude oil, which is called heavy oil in the industry. It is stored underground in the form of oil sands. Unlike Saudi light crude oil, heavy oil must be refined and mixed with light crude oil before it can be exported. Therefore, the cost of crude oil extraction in Venezuela is relatively high and the technology is relatively complicated.
The US Investment Bank pointed out in the report that there are signs that other OPEC members will increase production to fill the oil supply gap left by Iran. OPEC has the ability to replace Iran’s gap, but the bank added that even if the actual supply remains the same, the market will still face a low level of idle capacity.
In a practical sense, the impact of the trade war may exceed OPEC expectations because it will endanger GDP growth. To make up for the weak economy, OPEC needs to cut its daily oil output by another 100,000 barrels. To compensate for the increase in shale oil, OPEC only needs to cut its daily output by 500,000 barrels to produce the same price effect.
Data believes that the new sanctions are more symbolic than the more targeted sanctions previously considered, and these sanctions will limit Venezuela's crude oil exports to the United States. Afterwards, Venezuela issued a warning to eight international customers that it could not fulfill its crude oil export promise to them in June. According to the contract, the Venezuelan national crude oil company PDVSA will supply these customers with 450,000 barrels of crude oil per day in June, but in fact the company’s daily export of crude oil is only 640,000 barrels.
So this also means that the number and probability of your profit taking is very high, and you have repeated profit taking, and even your profit becomes a loss. In this situation, people’s hearts are easily shaken, no matter how determined they are, they have become a dream because they are faced with the profit slipping away from their hands and the money that could have been saved. Everyone will regret it, and everyone will feel uncomfortable. So it is easy to abandon the trend, and finally choose short-term.
At present, as far as the crude oil market demand is concerned, it is not the peak demand season, the terminal market consumption is not good, and the maNew York Stock Exchange crude oil pricerket shipments are under pressure. However, boosted by the good crude oil, domestic gasoline and diesel prices have shown a rebound trend during this round of pricing cycle, making wholesale and retail The price difference is gradually narrowing, and the performance of diesel is more obvious.