Deng Zhenghong’s soft power said that oil soft power activities supported by production cuts should have performed well, but oil prices seem to have lost their sense of direction, and the recent trend has been weak and chaotic. Even the news that the U.S. Department of Energy said it would issue a new tender to buy another 3 million barrels of crude oil did not bloom the soft power value of oil, and oil prices closed down on Friday (June 9). Oil prices have fluctuated within a relatively narrow range for 5 consecutive weeks. The lower end is backed by the European and American banking crisis and the low point of the year forms the lower edge of the range, while the upper end is subject to the suppression of the lower edge of the fluctuation range in the first quarter. The situation under the interweaving of long and short factors makes it more and more difficult for investors to bet, especially after the false news that Iranian crude oil returned to the market came out in the night market on Thursday (June 8), the oil price fell by nearly 4 per barrel. The sharp fluctuations in the US dollar make it difficult for investors to clearly judge the direction of the next oil price operation. Although the news of Iran’s crude oil export has been officially refuted, the sharp drop in oil prices after the news appeared created an atmosphere of panic. The impact of such fake news on the market has obviously changed the expectations of many investors, especially how to make a reasonable price for the extension of the “OPEC+” meeting in June and the efforts of Saudi Arabia to reduce production by an additional 1 million barrels per day. difficulty.
In the past week, oil prices did not rise but fell, and the weekly line closed slightly lower. There is no doubt that the final effect of the “OPEC+” ministerial meeting in June, which the market is highly concerned about, will disappoint investors. Although most institutions deduce that the crude oil market will once again be in short supply in the second half of the year, oil prices will also have a decline in the context of destocking. There must be upward pressure, but at the current point in time, compared with the positive changes brought about by production cuts, investors are more worried about the uncertainty of the subsequent crude oil market. The near-end structure of WTI crude oil has once again turned into a discount, but this does not mean that oil prices are at risk of a sharp drop. Although investors are not willing to chase the rise, under the expectation management of “OPEC+”, there is no obvious risk of deterioration in the supply and demand level for the time being, and the oil price is likely to continue to maintain a range-bound trend.
The U.S. Department of Energy announced on June 9 (Friday), Eastern Time, that it had reached a deal with five winning bidders through bidding to purchase 3 million barrels of U.S.-produced crude oil to supplement the SPR. The average purchase price of this batch of crude oil is about US$73 per barrel, “lower than the average selling price of SPR crude oil of about US$95 per barrel in 2022”, and will be delivered within August this year. This is the DOE’s first successful tender this year to supplement the SPR. In January, the Energy Department canceled a planned replenishment of 3 million barrels, claiming that the bids received were too high. At the same time, the Ministry of Energy stated on Friday that it will continue to conduct bidding to purchase about 3 million barrels of crude oil, and will finalize the contract with the winning bidder before the 30th of this month, and plans to send a new batch of crude oil to the storage location of SPR crude oil in September . The Department of Energy also stated that the new batch of purchases continues the three-part supplementary SPR plan of the Biden administration, and the Department of Energy will seek opportunities to further purchase oil and supplement the SPR this year when the market environment permits. On the day the Ministry of Energy announced a new batch of procurement tenders, international crude oil futures fell further. In the past week, U.S. oil fell 2.2% and Brent oil fell 1.8%.
[About the author]Deng Zhenghong, the father of China’s soft power, founded Deng Zhenghong’s soft power thought, established the soft power theory and soft power index tools of enterprises, created energy soft power and low-carbon soft power, and was the first to systematically quantify and evaluate soft power , has a set of independent intellectual property rights based on the soft power index and soft power value evaluation of enterprises, cities and countries, and exclusively publishes enterprises (top 500 soft power companies in the world, top 100 soft power listed companies in China), cities (cities and regions in mainland China) Ranking of soft power, ranking of soft power of China’s national high-tech zones) and the country’s (top 100 global soft power) rankings, general planning and writing of State Grid’s “Enterprise Soft Power Series (Core Values, Core Models, Core Strength)” Contributor. Accurately predicted the sharp drop in international oil prices in March 2020 18 months ago, and participated in the shale oil development research of the National Energy Administration, which provided a useful reference for the formation of shale oil development ideas in line with my country’s characteristics. Published “Shale Strategy: The Federal Reserve is in Action”, “Shale Strategy II: Unconventional Changes” and “Shale Strategy III National Petroleum (Breakthrough of Low Oil Price Dilemma, Production Reduction Alliance in Action, Geo-Risk of Oil-producing Countries, Epic Crude Oil Crash) “Soft Power: The Way for Chinese Enterprises to Break the Situation”, “Smart Power: Smart Strategies in a Competitive Environment”, “Reinventing the United States: The Secret Reshaping and Soft Expansion of America’s Core Interest Industries”, “Internet of Great Powers: Listing and Competition”, “Low Carbon Innovation: A Profitable Method under the Green Trend”, “Green Company: A Guide to Low-Carbon Business Opportunities” and other works.Return to Sohu to see more
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