OPEC + production cuts have been twists and turns, and the news is positive and negative. Last week, OPEC and its allies intended to extend the production cut agreement, which once cheered the market. Under this expectation, the crude oil market rose sharply. In the blink of an eye, the Saudi decision to stop voluntary additional production cuts hit the oil. Market trends.
Although OPEC has reached an agreement with non-OPEC oil producers participating in the production cut to extend the current daily output reduction by 9.7 million barrels for a month, they are worried that the production cut agreement cannot be strictly implemented, and Libya and Mexico will increase production. Saudi Arabia is unwilling to cut production in July. Compensate other member states for ineffective implementation of agreements. Saudi Arabia, Kuwait and the UAE have decided not to extend the 1.18 million bpd voluntary additional production cuts.
Overall, the OPEC+ decision in recent days essentially means that the rate of production cuts will gradually decline from July.
As for the recent supply of crude oil, as oil prices have continued to rise since May, US shale oil manufacturers may begin to increase production, and increased global supply will bring greater downward pressure on oil prices. Even though the current oil price has returned from a low level, for many OPEC+ member governments, crude oil revenue is still difficult to ease the current situation of fiscal constraints.
On the whole, the crude oil market is still in a difficult position, and it is very difficult for oil prices to continue to climb sharply above $40 per barrel. Once the supply and demand situation shifts to oversupply, oil prices are likely to begin to retreat from recent gains.
In July, prices were raised for all customers, the highest increase in Asia
Saudi Aramco's monthly crude oil selling price is one of the most watched data on the global market, usually released within the first five days of the previous month. In order to wait for the results of the OPEC+ meeting on the 6th, the company postponed the release of the OSP in July. Saudi Arabia is the maker of crude oil prices in the Middle East. It is expected that other Gulf countries will also follow the footsteps of Saudi Arabia to adjust prices.
Saudi Aramco reportedly raised its July official sales price (OSP) for all grades in all regions. Among them, the price of crude oil exported to Asia rose the most, and almost all the discounts given during the short contest with Russia have been erased. July crude oil prices for Asian customers will be raised by 5.60-7.30 US dollars / barrel, the largest price increase in 20 years.
The price of Arab light crude oil in Asia was raised by US$6.10 per barrel, a premium of US$0.20 from the benchmark price. According to the S&P survey, traders originally expected to increase by only $2-5 per barrel.
The difference between the OSP price of premium light and medium-sized crude oil heading to Asia also rose by US$0.2/barrel from the benchmark price, an increase of US$6.70/barrel and US$5.90/barrel respectively.
Asia is the largest regional market in Saudi Aramco, accounting for more than half of Saudi Arabia's oil sales, while the official price of Arab light crude oil, the flagship product exported by the Arab region to Asia, is the largest month-on-month increase in at least 20 years.
Of the 17 prices announced by Saudi Aramco, only two are lower than their respective benchmark prices. Among them, the Arabian heavy crude oil entering the Asian market has a premium of US$0.1/barrel from the benchmark price, an increase of US$5.6/barrel; the heavy crude oil sold to Northwest Europe has a premium of US$0.5/barrel from the benchmark price, an increase of US$3.9/month. barrel.
Saudi Aramco also sharply raised the price of oil sold to the Mediterranean. Among them, the Arab premium light crude oil rose 1.9 US dollars/barrel from the benchmark price, an increase of US$5.3/barrel; the Arab light crude oil rose 1.2 US dollars/barrel from the benchmark price, and increased by 4.70 US dollars/barrel.
At the same time, for Northwestern Europe, the Arabian light crude oil rose by US$0.3/barrel from the benchmark price, up by US$4/barrel; the Arab premium light crude oil rose by US$0.8/barrel from the benchmark price, up by US$3.9/barrel.
In addition, Saudi Aramco also raised the prices of all grades for the United States. Among them, the Arabian super light crude oil and the Arabian light crude oil both increased by US$0.6/barrel month-on-month, up US$2/barrel and US$1.35/barrel from the benchmark price respectively; the Arab medium-grade crude oil rose by US$0.5/barrel, up from the benchmark price US$0.55/barrel; Arabian heavy crude oil rose US$0.4/barrel from the previous month, up US$0.1/barrel from the benchmark price.
