Oil Prices Continue To Rise, Authorities Warn Of Downside Risks, And The Textile Industry Also Needs To Be Vigilant.

In March, Saudi Arabia launched an oil price war and sharply cut official prices, the biggest drop in 30 years.

In April, oil prices continued to rebound after the OPEC reached a reduction agreement.

In June 6th, the organization of Petroleum Exporting Countries (OPEC) and its oil producing allies agreed to extend the production reduction agreement. OPEC and non OPEC oil producers agreed to extend the average daily production of 9 million 700 thousand barrels of crude oil to the end of July. It is reported that the scale of the agreement is about 10% of the global supply, and that of the oil price station is 40 dollars.

With the resumption of production and consumption in various countries, the global demand for oil has returned to normal. Crude oil prices rose, the textile industry chain polyester end was boosted, PTA, ethylene glycol and other prices have been raised.

It has to be said that thanks to the rebound in the bottom of international crude oil and the injection of a "strong heart" into the raw material market, the current polyester enterprises can be said to be the best period since the beginning of the year. This has further stimulated the weaving factories to hoard raw material operations, thus promoting the overall active atmosphere of the textile industry.

However, a few days ago, Wall Street investment banks threw out early warning against the downside risks of oil prices. Although international oil prices have continued to rise in recent years, the expectations of major investment banks have begun to turn to bear and have warned against downside risks. The Goldman Sachs research team said on Tuesday that oil prices could rebound in the next few weeks, and that a small sell on Monday might be a sign that the 15%-20% has begun.

Goldman pointed out that the downside risk is mainly the uncertainty of demand and excess inventory. Although Goldman Sachs announced that it would raise its oil price expectations in 2020, they were unwilling to see more oil prices at this stage. At present, the bank expects Brent oil price to be 40.40 US dollars / barrel, and WTI oil price to be 36 US dollars / barrel, both of which are lower than the current transaction price.

However, under the double positive effects of supply and demand, there are also analysts who are generally optimistic about the long-term trend of international oil prices in the future. Citic securities analysis, with the continuous reduction of oil production countries, assuming that there is no recurrence of the epidemic in Europe and the United States, with the continuous recovery of demand, it is expected that the continuous storage cycle is expected to start from June to July, pushing the oil prices continue to rise in the second half of the year.

Textile also needs to pay more attention to the price fluctuation of crude oil terminal, so as to prevent the situation of being caught off guard.