Ultima Markets[Market Hotspot] Saudi Arabia's Strategic Price Reduction puts pressure on oil prices

On Monday,WTIcrude oilfuturesSignificant decline 5%, close to each barrel 70 The US dollar completely swallowed up the previous week's gains. The price pressure is mainly driven by Saudi Arabia's strategic price cuts and OPEC's increased production, which have eliminated the impact of geopolitical tensions in the Middle East.

Saudi Arabia has taken a noteworthy move by announcing a reduction in major Arab light crude oil shipments to Asia, which is worth market attention2 Monthly official selling price(OSP)Reduction per barrel from benchmark price2 USD to1.50 USD, setting a new record27 The lowest level in months.

According to Reuters,OPEC 12 Daily increase in total monthly oil production7Ten thousand barrels, reaching 2,788 Ten thousand barrels. Production in Iraq, Angola, and Nigeria has all grown, offsetting Saudi Arabia and other OPEC countries+The impact of continuous production cuts in oil producing countries. In addition, the number of oil drilling platforms in the United States increased last week to 501 Seat, analysts expect to increase again this year 20 Multiple drilling platforms.

At the same time, geopolitical tensions in the Middle East continue to escalate, and the factors affecting oil prices are becoming more complex. US Secretary of State Antony Blinken warned that if peace negotiations are not active, the conflict may worsen and spread again.

The global oil market is still closely related to the interplay between supply and demand changes, the political situation in production areas, and the strategic choices of major oil producing countries. Although market fundamentals such as OPEC's production decisions currently have a greater impact on prices, they are highly sensitive to the damage caused by conflict risks.

(WTI crude oil USD/BblMonthly chart)

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