ZHAOFXUS economy is improving, Saudi Arabia is reducing production, and oil price bulls are thriving

   Because Saudi Arabia's production reduction plan stimulates physical goodscrude oilBuying surged. New York crude oilfuturesAccumulated increase in a week3.72USD, increase8.9%, creating9The largest weekly increase since the end of the month. Brent crude oil since last year2Breaking through per barrel for the first time since the beginning of the month55USD.

    Executive Vice President of Saudi Aramco in St. LouisBillO’GradySaudi Arabia's production reduction is a major decision that has become a support for oil prices. Clearly, maintaining oil prices is crucial for them, and they are willing to let others use this to achieve their price targets. Earlier this week, Saudi Arabia promised to2Month and3Monthly and daily production reduction100Ten thousand barrels. This makes the prospect of supply tightening come earlier than expected, thereby favorably pushing up oil prices.

    On the other hand, US President elect Biden stated that the US employment report released on Friday indicates that the American people now need more emergency assistance, including distribution2000The stimulus check for the US dollar, even with deficit financing, taking action now will help the economy until the vaccination process allows for the relaxation of lockdown measures. Because this optimistic economic measure can effectively promote the recovery of crude oil demand, thereby supporting oil prices.

    local time7On the day, the Dow Jones Index closed at a historic high, breaking through for the first time31000Point. S&P500Index（S&P500）Up and over1%, Stand on3800Point; The Nasdaq Composite Index rose above2%Breakthrough13000Click on the big level.ZHAOFXAccording to an analysis by Caijing, the US stock market has not been affected by the turbulent political situation in the US and has once again reached a new high, causing investors to bet that the Democratic controlled Congress will introduce more stimulus spending, triggering crude oil demand and boosting oil prices. From a technical perspective, oil prices have shown a good bullish trend.

    writing/ZHAOFXCaijing Network