Why did crude oil prices fall today
1/13/2021

Why did crude oil prices fall today

By Crude oil market dynamics

China Petroleum.com, June 22. Crude oil prices maintain a range-bound pattern. Oil price fluctuations are not obvious on the eve of the OPEC meeting. Investors need to be alert to Iranian disruptions. Investors are advised to sell Why did crude oil prices fall todayhigh and buy low before the OPEC meeting.

Since July of 207, oil prices have been advancing all the way. WTI crude oil futures prices have continued to rise from around 44 US dollars per barrel, and in May 208 they once exceeded the 70 US dollar per barrel mark. The market began to have views that the supply of shale oil restricting crude oil prices is a false proposition. In 208, the global crude oil price king returned. It is not a small number of people who believe that the price of oil exceeded $00 in 208.

Cunningham wrote that pipeline restrictions in the Permian Basin in the United States have recently become a hot topic, especially when oil producers in West Texas were forced to accept substantial price cuts. However, the transportation bottleneck problem in the midstream will not be resolved soon, which makes people question the growth prospects of shale oil in the Permian Basin and even the entire United States.

In unreasonable frequent transactions, the probability of loss is much higher than the probability of profit, which affects the mentality. If you rush to make up for the loss, continue unreasonably frequent transactions, and fall into market fluctuations, it will cause a vicious circle.

Turkey's firm siding with Iran has a lot to do with Turkey's recent stalemate with the United States. The U.S. Treasury Department announced on August that it would prohibit any U.S. company from having business and financial transactions with two Turkish Foreign Ministry officials; subsequently, the Office of the United States Trade Representative USTR announced that it would review the preferential tax exemption treatment GSP for Turkey. As the largest and oldest trade assistance program for developers in the United States, GSP has brought about 600 million U.S. dollars in value of duty-free goods to Turkey, accounting for 7% of the total US imports from Turkey. Under the pressure of the United States, Turkey has fallen into an economic vortex of internal and external troubles. At this time, facing Iran, which is also in economic difficulties, Turkey may have a sympathy for the same illness.

Subsequently, the customs released the total crude oil imports for 208 years. Data show that crude oil imports in 208 were 6.2 billion tons, a year-on-year increase of %, equivalent to 9.24 million barrels ofWhy did crude oil prices fall today daily imports. Imports of refined oil also rose by 5% to 500,000 tons.

Since Yemen’s Houthi armed forces attacked two Saudi oil tankers and caused Saudi Arabia to suspend oil shipments through the Mande Strait, the geopolitical risk premium has increased. Saudi Energy Minister Falih said on Thursday July 26 that all oil shipments via the Red Sea channel of the Mande Strait will be temporarily suspended. According to EIA data from the U.S. Energy Information Administration, in 206 it is estimated that an average of 4.8 million barrels of crude oil per day were transported to Europe, the United States, and Asia via this channel. Tensions between Saudi Arabia and Yemen's Houthi have intensified in recent months. Many targets in Saudi Arabia have been attacked by its ballistic missiles and drones. To ensure the safety of oil transportation, the Saudi-led coalition launched an air strike on the Yemeni port city of Hudaydah on Friday night.

The EIA report shows that the United States sent approximately 760,000 barrels of crude oil to foreign countries every day in April. Until July this year, US producers and traders will export more than 5 million barrels of crude oil to India. In 207, the figure was only 8 million barrels.

Investors who are prone to panic are generally weak in market research and judgment, and feel insecure about the future development trend of the product. If you can improve your ability to judge trends and have a general understanding of the trend and nature of the market, you will easily overcome your panic.