This Is The Key To The Two Days Of Crude Oil And Ice.

Crude oil last week showed two days of ice and fire. In the context of the global economy, crude oil fell to a low level of around 50.5, but OPEC, represented by Saudi Arabia, said it would stabilize the crude oil market by cutting production, causing a sharp rise in oil prices and recovering most of the previous decline.

So, oil prices are facing a lot of bad luck, and this week's trend is the key.

　　 Trade disputes suppress oil prices

The uncertainty of trade relations has brought great challenges to the demand and Prospect of crude oil. President Trump announced that it would levy a 10% tariff on China's $300 billion export to the United States in September 1st, which does not include the 25% tariff previously imposed on China's $250 billion cargo.

China's Ministry of Commerce responded that China is strongly dissatisfied and resolutely opposed. If the US tariff measures are put into effect, China will have to take the necessary counter measures. Affected by this news, the global economic outlook is fading, and crude oil is unable to get rid of the fear of falling demand. It is under tremendous downward pressure.

US oil stocks unexpectedly increased

Last week, the growth of US crude oil inventories data was more planned than unexpected, because previous drilling platforms affected by hurricanes restarted, and the operating efficiency and production efficiency exceeded expectations, leading to output growth. In addition, the consumption side is still very low, which has led to a substantial increase in crude oil inventories.

In next week's inventory report, investors are still vigilant against the possibility of a substantial increase in inventories.

The situation in the Middle East and OPEC reduction

The turmoil in the Middle East still worries the market that crude oil supply may be affected. Last week, Iran seized another foreign tanker, allegedly smuggling fuel to some Arabia countries. Secondly, according to market survey, OPEC crude oil output fell 210 thousand barrels per day to 29 million 880 thousand barrels per day in July, and the implementation rate of production reduction rebounded.

Saudi Arabia officials also said Saudi Arabia had called other oil producing countries to discuss possible policy responses to the recent fall in oil prices to the lowest level this year.

To sum up, the factors that support and put pressure on oil prices are relatively balanced at present. This may also lead to oil prices falling into the air in this week's trend. Under this expectation, crude oil prices will enter a downturn period, and 50 US dollars / barrel will support it.