GKFXPrimeJiekai Finance: Saudi Arabia announces comprehensive price cuts and increased production, causing significant fluctuations in the global market

In the past week, the outbreak of the global overseas epidemic has led to price tension and has been hovering around2018year12month24Daily low point43Near the US dollar. Last Friday, led by Saudi ArabiaOPEC+OPEC and its allies have begun negotiations with Russia on further production reduction agreements. The main producing countries were originally expected to agree to further daily production cuts150Million barrels to cope with the impact of the COVID-19. But the ultimate result was that Russia refused to continue reducing production.

Therefore, last Saturday, Saudi Arabia announced a comprehensive price war,4monthcrude oilSales price reduction4-7The US dollars vary. Reduce prices comprehensively while increasing production comprehensively. Saudi Arabia's production this month is97010000 barrels/Japan, but Saudi Arabia announced that production will far exceed next month100010000 barrels/Day, may even reach120010000 barrels/Record high for the day.

Saudi Arabia's move is aimed at deterring Russia, the United States, and other oil producing countries, and forcing them to return to the negotiating table to reach a production reduction agreement that is satisfactory to all parties. The market is concerned about a full-scale oil price war between Saudi Arabia and Russia, resulting in a sharp drop in oil prices during the Asian session. The increased risk aversion in the market indirectly increases the market's pursuit of safe haven assets, pushing down US Treasury yields and pushing up the euro, yen, Swiss franc, andgoldWait for other safe haven currencies.
From a technical perspective, the distance between crude oil prices2016The low point of the year26.03The only difference in US dollars4USD, if Saudi Arabia's actions regarding comprehensive price reduction and increased production4If the month falls below reality, then crude oil will continue to decline26.03The driving force in this area.

（WTIWeekly chart, sourceGKFXPrime MT4）

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