Oil pressureOPEC + production cuts suppress demand
On Monday (April 17), international oil prices were under pressure. Although demand may hit a record high in 2023, the latest production cuts announced by the Organization of Petroleum Exporting Countries and its partners (OPEC+) may harm consumers and the global recovery, limiting the rise in oil prices.The expected reduction in interest rate cuts by the Federal Reserve also poses a bearish impact on oil prices.
Crude oil futures fell 0.30% to US882.27/barrel; ICE Brent crude oil futures fell 0.31% to US886.04/barrel.
The two major markets have risen for four consecutive weeks, the longest rise since mid-2002, as the International Energy Agency (IEA) predicts that demand in 2023 will reach a record 101.9 million barrels per day, an increase of 2 million barrels per day over last year.
At the same time, oil exports from northern Iraq to the Turkish port of Ceyhan have been almost stagnant for three weeks.The previous arbitration case ruled that Turkey had benefited from oil exports that had not been authorized by the Baghdad authorities and must compensate Iraq.
However, the IEA also warned in its monthly report that the latest production cuts announced by the Organization of Petroleum Exporting Countries and its partners (OPEC+) may exacerbate oil supply shortages in the second half of the year and may harm consumers and the global economic recovery.
The IEA also said that although the European Union has implemented a maritime import ban and the United States has taken the lead in implementing a price cap policy, due to the strong flow of petroleum products, Russia's oil exports in March reached the highest level since April 2020. The highest level since April 2020.
The rising cost of supplying crude oil from the Middle East, which meets more than half of Asia's demand, is already squeezing refinery profits, prompting Asia to seek supply from other regions.Refineries also increased gasoline production before the peak of summer demand, while cutting diesel production as profit margins deteriorated.
Although the fixed price and time spread have strengthened with the support of market tightening expectations, demand concerns obviously remain.The decline in refinery profit margins is still a feature, and the weakness is mainly caused by intermediate distillates.The strengthening of crude oil prices will not help refineries increase profit margins.”
The Fed will raise the loan interest rate by another 25 percentage points in May and postpone the expected interest rate cut until the end of this year.Interest rate increases have prompted the strengthening of the dollar, which makes dollar-denominated oil more expensive for holders of other currencies.
The current trend of crude oil is more tangled. On the whole, it still depends on the impact of the news and market sentiment. Friends who participate at this time must pay attention to their positions.-
Crude oil futures fell 0.30% to US882.27/barrel; ICE Brent crude oil futures fell 0.31% to US886.04/barrel.
The two major markets have risen for four consecutive weeks, the longest rise since mid-2002, as the International Energy Agency (IEA) predicts that demand in 2023 will reach a record 101.9 million barrels per day, an increase of 2 million barrels per day over last year.
At the same time, oil exports from northern Iraq to the Turkish port of Ceyhan have been almost stagnant for three weeks.The previous arbitration case ruled that Turkey had benefited from oil exports that had not been authorized by the Baghdad authorities and must compensate Iraq.
However, the IEA also warned in its monthly report that the latest production cuts announced by the Organization of Petroleum Exporting Countries and its partners (OPEC+) may exacerbate oil supply shortages in the second half of the year and may harm consumers and the global economic recovery.
The IEA also said that although the European Union has implemented a maritime import ban and the United States has taken the lead in implementing a price cap policy, due to the strong flow of petroleum products, Russia's oil exports in March reached the highest level since April 2020. The highest level since April 2020.
The rising cost of supplying crude oil from the Middle East, which meets more than half of Asia's demand, is already squeezing refinery profits, prompting Asia to seek supply from other regions.Refineries also increased gasoline production before the peak of summer demand, while cutting diesel production as profit margins deteriorated.
Although the fixed price and time spread have strengthened with the support of market tightening expectations, demand concerns obviously remain.The decline in refinery profit margins is still a feature, and the weakness is mainly caused by intermediate distillates.The strengthening of crude oil prices will not help refineries increase profit margins.”
The Fed will raise the loan interest rate by another 25 percentage points in May and postpone the expected interest rate cut until the end of this year.Interest rate increases have prompted the strengthening of the dollar, which makes dollar-denominated oil more expensive for holders of other currencies.
The current trend of crude oil is more tangled. On the whole, it still depends on the impact of the news and market sentiment. Friends who participate at this time must pay attention to their positions.-
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