Crude oil brief comment: waiting for OPEC+ to further negotiate production policy, international oil prices fluctuate slightly-Finance News

Original title: Crude oil brief review: waiting for OPEC+ to further negotiate production policy, international oil prices fluctuate slightly

1. On Friday, OPEC and its production reduction allies did not reach an agreement on output adjustments. It is said that the discussion will continue next Monday

2. The number of oil wells drilled by AOL increases

3. European and American crude oil futures rose nearly 25% in the first half of the year

OPEC and its production reduction allies did not reach an agreement on production adjustments. The meeting will be extended to Monday to continue discussions. Traders enter the market cautiously and international oil prices fluctuate slightly. Friday (July 2) the New York Mercantile Exchange West Texas Light Oil August 2021 futures settlement price was US$75.16 per barrel, down by US$0.07/barrel or 0.1% from the previous trading day. The trading range was US$74.41-75.62. /Barrel; London Intercontinental Exchange’s September 2021 Brent crude oil futures settlement price was US$76.17 per barrel, an increase of US$0.33/barrel or 0.4% from the previous trading day, and the trading range was US$75.21-76.43/barrel.

The production policy meeting of OPEC and its production reduction allies has been delayed repeatedly. Because the UAE and other participating countries of the production reduction agreement failed to reach an output agreement for August to December because of the failure to modify the production base number, it is said that OPEC and its production reduction allies have decided at the 18th meeting. The discussion will continue on Monday.

The 18th meeting of OPEC and its production reduction allies was originally scheduled to be held on July 1 and ended on the same day. However, no agreement was reached on July 1, and it was decided to postpone the meeting again until July 2. Because it is a video conference, it is difficult for the news media to interview the participants, so the amount of news is not large, and there is no new announcement on the OPEC website. Only CNBC reporter Brian Sullivan reported that OPEC and non-OPEC energy ministers ended Friday’s meeting without reaching a resolution, and they will discuss oil production policy again on Monday.

According to an unnamed OPEC source, OPEC and its production reduction alliance agreed in principle to increase oil supply by 400,000 barrels per day from August 2021 to December 2021 to meet growing demand. OPEC leader Saudi Arabia and non-OPEC leader Russia proposed to extend production cuts until the end of 2020, but the UAE opposes this plan on the grounds that the base of production cuts should be changed to effectively increase production policies.

The current base for OPEC and its production reduction allies to restrict production is still the October 2018 production. Since then, the crude oil production of most countries participating in the production reduction agreement has declined or increased. According to the current agreement, the benchmark for the UAE’s daily production level in October 2018 is 2.66 million barrels. The OPEC secretariat estimates based on second-hand information that the UAE’s daily crude oil production in May was 2.64 million barrels, which was similar to the 2.641 million barrels of crude oil officially provided by the UAE.

The market is waiting for the OPEC meeting this week. It is confident that OPEC will control the growth rate of production. The expectation that supply growth will not match demand growth has pushed European and American crude oil futures to the highest price since October 2018. U.S. crude oil inventories have been reduced for six consecutive weeks. WTI At one point it rose to more than US$76 per barrel. In the past week, the New York Mercantile Exchange’s first-month light and sweet crude oil futures increased by 1.11 US dollars, an increase of 1.50%; the average settlement price per barrel was 73.95 US dollars, 0.52 US dollars higher than the previous week, and the highest settlement price was 75.23 US dollars per barrel and the lowest per barrel. The barrel is 72.91 dollars; the trading range is 71.97-76.22 dollars per barrel. London Intercontinental Exchange Brent crude oil futures for the first month fell by a net $0.01, a decrease of 0.01%; the average settlement price per barrel was $75.32, which was $0.01 lower than the previous week. The highest settlement price was $76.17 per barrel and the lowest was $74.68 per barrel; trading The range is US$73.90-76.74 per barrel.

According to data released by Baker Hughes, GE’s oilfield service agency, as of the week of July 2nd, AOL had 376 oil wells drilled, an increase of 4 from the previous week; an increase of 191 from the same period last year. The report shows that the DJ-Niobrara Basin in Colorado has increased by 2; the Marcellus Basin has increased by 1; the Permian Basin has increased by 1; the Williston Basin has increased by 1; There were 14 offshore platforms in the United States this week, the same as the previous week, and an increase of 2 over the same period last year. Baker Hughes data also showed that there were 99 natural gas rigs in the United States during the same period, an increase of 1 from the previous week; an increase of 23 from the same period last year. Among them, there are a total of 459 onshore oil and gas platforms in the United States, an increase of 5 from the previous week; an increase of 208 from the same period last year. There are a total of 475 oil and gas rigs in the United States, an increase of 5 from the previous week; an increase of 212 from the same period last year.

In the second quarter of 2021, the New York Mercantile Exchange’s first-month light and sweet crude oil futures netted a net increase of US$14.31 per barrel, an increase of 24.19%; the second quarter averaged US$66.17 per barrel, US$38.167 higher than the same period last year; the highest settlement price was 74.05 per barrel. US dollars, the lowest per barrel is 58.65 US dollars; the intraday highest per barrel is 74.45 US dollars, and the lowest is 57.63 US dollars. The Brent crude oil futures on the London Intercontinental Exchange rose by $11.59 per barrel in recent months, an increase of 18.24%; the fourth quarter averaged $69.08 per barrel, which was $35.695 higher than the same period last year; the highest settlement price was $76.18 per barrel and the lowest was 62.15 per barrel. US dollars; the highest intraday is 76.60 US dollars and the lowest is 61.247 US dollars.

In the first half of 2021, the New York Mercantile Exchange West Texas Intermediate base crude oil futures in the near-month net rose by US$24.95 per barrel; an increase of 54.4%; the settlement price averaged US$62.218 per barrel, which was US$25.40 higher than the average price of the same period last year, an increase of 68.98%; the settlement price The highest is 75.05 US dollars, the lowest is 47.62 US dollars, the intraday highest is 74.45 US dollars, and the lowest is 47.18 US dollars. The Brent crude oil futures on the London Intercontinental Exchange increased by US$23.33 per barrel in recent months; an increase of 45.04%; the settlement price averaged US$65.23 per barrel, which was 23.12 US dollars higher than the average price of the same period last year, an increase of 54.93%; the highest settlement price was US$76.18 and the lowest. US$51.09; the highest intraday is US$76.60 and the lowest intraday is US$50.57.