Therefore, in the absence of external influence, the U.S. oil production will maintain a continuous increase this year, and what OPEC can do is to offset the negative impact of U.S. oil production by continuously strengthening production. Earlier articles mentioned that crude oil in June this year is about to usher in a turning point in its fate, because OPEC will decide whether to continue to cut production at that time. The current consensus in the market is that OPEC will inevitably continue to cut production this year, and OPEC has also made it clear before. The reduction in production will be maintained in 208, and may even be delayed to 209. If you look at it with an optimistic attitude, OPEC should be able to maintain the reduction iCrude oil contract specificationsn production this year.
President Trump put aside the words of reconciliation, calling the cancellation of the meeting a major setback for the world. Trump said that the strength of the U.S. military and U.S. allies was greatly enhanced, and he warned Kim Jong Un not to take stupid or reckless actions.
Summary: In May of this year, Trump announced that he would restart sanctions on Iran. Other countries are required to reduce the import of Iranian crude oil, or even reduce the import volume to zero. If anyone still imports Iranian crude oil after the 4th, sanctions will be imposed on that country. There have been rumors recently that the United States may reduce its reduction target to 50%.
Investors and analysts believe that sanctions against Iran will not cause oil prices to soar to triple digits for reasons. Escalating trade issues may curb global economic growth, thereby affecting the growth of oil demand. A stronger U.S. dollar has not only increased the import costs of oil-importing countries, but also increased the price of oil denominated in U.S. dollars. In addition, there are concerns that oil prices above US$80 per barrel are the beginning of demand disruption, and OPEC and Russian leaders hope to avoid this.
In order to ensure the smooth start of the project, the federal government decided to spend huge sums of money to buy the ownership of the Trans-Mountain Oil Pipeline and the expansion project. Once the project is transferred to federal ownership, it will be difficult for the British Columbia government to forcefully stop it. After the federal government announced the acquisition news, oil investors seemed to see the light, and the price of crude oil in the West once rushed to more than US$50 per barrel. However, such days are only a flash in the pan, because the Canadian appeal quickly helped the aborigines to get back to the situation.
Innes said: Considering so many factors that supply may be disrupted, and there is little sign that the current marketCrude oil contract specifications turmoil will end soon, and traders continue to pay geopolitical risk premiums, oil prices should still be bought.