The Price Of Oil Has Risen By More Than 40%, A Big Turning Point? Polyester Market Has Been Surging. ?

President Trump said in a high profile that he believes Saudi Arabia and Russia will reach an agreement within a few days to end the oil price war. He recently spoke separately with the leaders of the two countries.

He also said he had invited executives from the US oil companies to come to the White House to discuss how to help American energy companies in the context of the new pandemic and oil price war.

Cloth oil violence rose, or over 40%, to 34.56 U.S. dollars / barrel. US oil rose more than 30%, breaking 26 US dollars / barrel.

　　 Trump told the media 1 days that he hoped that Saudi Arabia and Russia could reach an agreement within a few days, thereby reducing oil production and reviving oil prices.

"Globally, the oil industry has been severely damaged." He said, "it is very bad for Russia, and also very bad for Saudi Arabia. I think this has hurt both sides. I think they will come to an agreement. "

A Saudi source told the media on 1 that Saudi Arabia supports cooperation among oil producing countries to stabilize oil prices. However, Russia has opposed the further reduction in production so as to result in a price war between Saudi Arabia and Russia.

The US government will soon send Victoria Coates, a White House adviser to the Middle East, to Saudi Arabia as a special envoy, hoping to persuade Saudi Arabia to reduce oil production.

In March 30th, Trump also telephoned Russian President Putin to discuss oil prices and other issues. "The leaders of the two countries exchanged views on the current situation of the global oil market," Moscow Kremlin said in a statement released after the conference call. The two sides agreed to hold consultations between the US and Russia through the energy secretary. " The statement did not disclose what the ministers will discuss in detail, but Russia has said earlier that it wants to see more countries join efforts to balance the global oil market.

Moscow Kremlin spokesman Per Skov (Dmitry Peskov) said 1 days that Russia and Saudi Arabia had no dialogue on the energy market, nor did Putin immediately plan to talk to Saudi leaders. But he added that such a dialogue platform could be built quickly if necessary.

Trump said in March 31st that he would participate in the dialogue between Saudi Arabia and Russia on oil price war if needed. He also said recently that Saudi Arabia and Russia are now "Crazy" in price war. "I never thought I would say, maybe we have to raise the price of oil because we really need to do that." He said.

The OPEC+ production reduction agreement reached by the member states of the Petroleum Exporting Countries (OPEC), Russia and other oil producing countries formally expired in March 31st. After that, countries can produce crude oil without restriction.

According to industry sources, Saudi Arabia's crude oil supply exceeded 12 million barrels per day in April 1st. Saudi Arabia has said earlier that oil exports will soon reach 10 million barrels a day, but has not disclosed how many crude oil will enter the oil storage facilities.

What will be the impact of rising crude oil prices on the textile industry?

For polyester enterprises, the most troublesome problem at present is the problem of stock elimination.

Polyester stock in polyester plant has reached an unprecedented high level. Statistics show that the overall stock market in the polyester market is now concentrated for 34-45 days. In terms of specific products, POY stocks are available for 28-35 days, and FDY stocks are close to 29-36 days, while DTY stocks are about 34-45 days.

On the other hand, from the point of view of production and marketing, as the wait-and-see mentality of weaving enterprises is obvious, since the middle of March, the production and marketing of polyester factories have been maintained at almost 4 percent, and the stock of polyester has not been reduced.

If the price of polyester products is driven by the crude oil, it will have a positive effect on stock to a certain extent. However, under the pressure of high inventory, the rising trend will not continue.

For weaving enterprises, although the continuous decline of polyester raw materials has also troubled a lot, but on the other hand, the contraction of foreign trade caused by the epidemic of foreign countries is the main contradiction at this stage.

According to an industry survey report in Keqiao, 78.4% of textile enterprises in the region indicated that orders were decreasing, and 64.8% of enterprises reflected that the existing orders were cancelled by customers.

Because of the reduction of orders and the increase of grey cloth inventory, many weaving enterprises decided to implement holiday and production reduction operations in the peak season of "golden three silver four". It is reported that a well-known enterprise will start off in April 1st. One cloth boss said that the capacity has been reduced to 1/3 recently. At the same time, a company with 300 looms also said that some machines would be shut down in the middle of next month.

And the measures to reduce production capacity of weaving enterprises are a serious pressure on the price of polyester products.

What is the future of polyester factories with a large quantity of polyester stock?

The epidemic is becoming more and more intense in the world, and foreign trade orders are not optimistic in the coming months. Weaving enterprises have tightened their production capacity and improved their ability to resist risks. Under such circumstances, polyester factories with large quantity of polyester stocks are in a very awkward position. Perhaps soon, when these undercurrents converge, it will create a new round of shuffling of the polyester industry.