However, crude oil organizations including OPEC and the International Energy Agency IEA predict that the growth of crude oil demand in the next few years will slow to an average annual increase of 0 million barrels per day. It surpassed the United States in 207 and became the world's largest crude oil importer. Bloomberg believes that the huge Crude oil contract opening pricevolume and the change in demand represented are the decisive factors for global oil prices.
At present, everyone is most concerned about trade issues, which are the easiest to cause fluctuations in the capital market, but because the volume of trade between the United States and Russia is not large, it has little impact on the market. Frankie said that even if the meeting caused short-term fluctuations, it would not change the market's investment strategy for core assets such as US dollars and stocks.
He added: We have not yet had any concerns about this decision because we have a very flexible mechanism that allows us to make different decisions in the future. As part of the Saturday agreement, Russia plans to increase production by 200,000 barrels.
In addition, the United States is not the only country producing more oil. Canada is also increasing crude oil production. However, in fact, most Canadian oil is shipped to US refineries and supplied at substantial discounts. Therefore, the Canadian crude oil production model is not as important to the international market as the US model. Brazil is also increasing oil production, and Rosneft recently stated that it has increased its daily oil production by 70,000 barrels and wants to see how quickly it can return to the level before the production cut agreement.
Saudi Arabia has promised to intervene to prevent supply shortages. Saudi Arabia's current output is 0.4 million barrels per day, and it is theoretically capable of increasing production to more than 2 million barrels per day. But as a result, the world basically has no spare capacity to alleviate the supply interruption in oil-producing countries such as Libya, Venezuela and Nigeria. Therefore, by then, the market prospects may be far less than the current calm. IEA said.
Sun Degang, deputy director of the Middle East Institute of the University of Foreign Studies, pointed out in an interview with Times Finance that the Israeli government has paid close attention to the Iranian nuclear issue recently. One of the reasons is to cooperate with the US government in public opinion to create momentum for Trump's withdrawal from the Iran nuclear agreement. In the face of the U.S.-Israel drama, Iran has always acted calmly. The ICrude oil contract opening priceranian Foreign Minister even issued a tweet to make fun of Israel’s allegations. However, the tension between Israel and Iran shows no signs of abating.