The U.S. Energy Information Administration EIA released a report on Wednesday May 6th, showing that as of the week of May Day, U.S. crude oil inventories decreased by 404,000 barrels to 2.4 billion barrels, a market estimate of a decrease of 70,000 barrels. Refined oil inventories in the United States fell by 20,000 barrels, and recorded a decline for six consecutive weeks. The market is estimated to decrease by 250,000 barrels. U.S. gasoline inventories fell by 790,000 barrels, and the market estimated a decrease of 40,000 bChina removes U.S. crude oil from target tariff listarrels, the largest decline in the nine weeks since the week of June 6.
Looking back at the outbreak of the US-China trade war concerns, crude oil prices have fallen sharply. Therefore, if this sentiment continues to spread in the market outlook, it is not ruled out that crude oil prices will plummet again. Finally, OPEC's concerns about increasing production have eased. Worries about the Sino-US trade conflict have spontaneously arisen. Therefore, the crude oil market is not alone. The current short-term rebound in oil prices has not helped the market escape the real danger zone.
In addition, Saudi Arabia also has to consider the relationship between OPEC member states and Russia and the United States, as well as the tension between OPEC and Iran. Iran, as the third largest oil producer among the four members of OPEC, is also a rival of Saudi Arabia in major regions.
Foreign media survey results show that OPEC crude oil production continued to decline in April. Due to the continuous decline in Venezuelan crude oil production, the country's crude oil production has fallen from nearly 2.5 million barrels per day in early 206 to about 500,000 due to the impact of political turmoil and economic crisis. Barrels per day, and this downward trend has not changed, which has brought effective support for oil prices. According to data from Russia, the country’s crude oil production remained unchanged at 0.97 million barrels per day in April, continuing to fulfill its commitment to cut production.
International oil prices fell below US$50/barrel on Monday, February 6th. On Tuesday, U.S. oil plunged 7%, Bursa oil fell 5%, and WTI crude oil fell below US$46, a new 6-month low. As of press time, WTI crude oil has fallen by 07% to $47, and Brent crude oil has fallen by 8% to $546.
According to reports, the United States has approximately 600 million barrelsChina removes U.S. crude oil from target tariff list of oil reserves, and the Trump administration is considering using the country’s oil reserves, which will increase oil supply. At the same time, the number of US rigs remained unchanged at 86 in the week ending July 1st, as the rate of growth slowed as crude oil prices fell.
Next Tuesday (March 4), the domestic refined oil price adjustment window will open again. Since the last round of refined oil price adjustments for five consecutive declines, international oil prices have been rising, rising from 45 U.S. dollars to above 50 U.S. dollars, a rise of 5 U.S. dollars.
In the face of increased production announcements, Brent crude oil prices fell in response, but WTI crude oil performed differently. In the past few trading days, the spread between WTI crude oil and the global oil price benchmark Brent crude oil has narrowed by more than half, firstly because the risk premium of Brent crude oil has shrunk because the market has begun to set prices based on increased supply.