Either way, Saudi Arabia may sowCurrent crude oil prices the seeds of another Great Depression in the oil market. There is no doubt that this is very detrimental to its own interests. If Saudi Arabia can keep the supply tight enough, it can push the price up to $00. Deutsche Commerzbank analyst Carsten Frisch said, but in the long run, this will pay a price, that is, it will cause a new wave of shale oil and oil from other sources.
Leverage: Leveraged trading is also called virtual trading, margin trading. That is, spot crude oil investors use their own funds as a guarantee to enlarge the financing provided by banks or brokers to carry out spot crude oil transactions, which is to enlarge the trading funds of spot crude oil investors. The proportion of financing is generally determined by the bank or broker. The larger the proportion of financing, the less funds the customer needs to pay.
Data from Europe shows that as of the week of September 4, the net long position of Brent crude oil increased by 7% to 46,742 lots. Data from the US Commodity Futures Trading Commission also showed that the net long positions of West Texas Intermediate crude oil in the United States also increased by 664 hands to 86,487 hands during the same period.
Lipow said that Trump's Twitter has not changed this situation. The market believes that oil supply is tight and sanctions on Iran will make the shortage worse. Until the oil distribution rose to 80 US dollars per barrel, Saudi Arabia will be able to make effective response measures.
But whether it can persist next year will require a question mark. You must know that the United States will not take into account whether your OPEC cuts production, because OPEC's production cuts only cut its own production, and have no effect on the oil production behavior of the United States, and cannot even interfere with the further US invasion of the market. So as long as the United States wants, It is completely possible to ignore OPEC's continued increase in crude oil production and accelerate its becoming a net crude oil exporter. In order to maximize the benefits of crude oil resources, the United States will inevitably increase crude oil production while expanding the crude oil market. The effort on these two points is the biggest suppression on OPEC.
Goldman Sachs reported on Monday that the United States may release strategic crude oil reserves, which implies that Saudi Arabia may notCurrent crude oil prices be able to effectively increase production in accordance with Trump's requirements. Coupled with the new sanctions imposed by the United States on Iran, Iran faces the risk of a decline in oil exports. The uncertainty of these events makes it difficult for the market to predict the extent and timing of the recent supply changes in the crude oil market, making the short-term fundamental outlook of the oil market ambiguous, and oil price volatility will remain high.
Although crude oil prices continued to rise briefly after the opening on Monday, they returned to above US$69, but eventually returned to decline. They even fell below the 68 line, but finally closed between 68-69, which shows the intraday vibration. The magnitude is relatively large, but the closing point is still in a relatively safe position. Therefore, compared with some views that this is the beginning of the impact of OPEC’s production increase, the editor believes that Monday’s fall is only a limited correction to last week’s surge. .