Ying Wanru:3month20Reducing production to stabilize military morale, while the rise in crude oil is still foreseeable for the future market analysis

Ying Wanru:3month20Reduce production to stabilize military morale,crude oilAn Analysis of the Future Market with Still Possible Upgrades

The price of crude oil has always been a concern and concern in the international market, and low oil prices have always been a concern for oil producing countries and oil traders!Since last year when OPEC and non OPEC countries made up their minds to reach a production reduction agreement, oil prices have rebounded to some extent, but still have not achieved the expected results. There are multiple reasons, and here I will analyze one or two for investors. Of course, a wrong order is a wrong order, and no matter how persistent you are in carrying the order, it is difficult to say that you can make a profit and get out. Don't treat hedging as a mid line position. The so-called long term refers to waiting for profits to expand when the direction is correct, rather than reversing the direction and watching losses expand. Please pay attention to the author, Wei Xin, regarding the unlocking planjs6486The author will provide specific solutions based on Monday's real-time market situation.

Firstly, the reduction in production is not as harmonious and unified internally as they promote. For many oil producing countries, crude oil output is an important support for their economic development. During the effective period of the production reduction agreement, it means that national income will be reduced for a certain period of time. Although reducing production can increase oil prices and make up for some of the difference, people's hearts are complex. Apart from the mutual distrust within the production reduction, everyone wants to not only increase oil prices but also ensure output or increase market share, which leads to a significant discount in the implementation of the production reduction.

Secondly, US shale oil producers have always been a major concern for oil producing countries. You should know that there is only so much market share, and for US crude oil producers, it is up to you whether to reduce production or not. They are concerned about market share, and when is it better not to seize market share while you reduce production?So this situation is particularly awkward for all parties involved in the reduction of production. There are numerous internal problems, and there are also major external enemies, adding "betrayal" weight to the already unstable oil producing countries. It is not surprising that they quietly increase production.

The above two aspects can effectively explain why oil prices are always unable to rise, ultimately due to the imbalance between supply and demand. So where should the future oil prices go?In the author's opinion, the current oil prices have not achieved the expected effect of the production reduction agreement, so the possibility of the agreement being postponed is very high. Therefore, the possibility of continuous decline in crude oil is not high. However, on the other hand, according to the latest data, the number of oil wells drilled in the United States has once again increased significantly, which has created many obstacles to the rise of oil prices. It can be foreseen that US crude oil production will continue to increase significantly in the future. Overall, the author believes that the impact of reduced production is still greater than the rebound in US oil production. Although oil prices may face difficulties in the future, they still need to rise. Investors need to be reminded that although we are still bullish, we cannot blindly pursue the long position. Analyzing the real-time situation during the trading day, making profits at high prices and entering the market again at low prices is the correct solution.

The market is nothing more than long and short trading, neither long nor short, neither short nor long. The game of long and short is actually a secondary distribution of profits and a re planning of wealth, either reveling in profits or disappearing in stop losses. Many investors encounter an awkward problem, which is to have short orders in hand when rising, and to find multiple orders in hand when falling. The set stop loss happens to be in seconds, and the unset stop loss happens to be trapped. Faced with such a unpredictable investment market, no one leads you, and you will inevitably take many detours.(Add micro apricotsjs6486)Teacher Yingwanru won't guarantee that you won't take a detour, but I can promise to do my best to help you avoid it. If you are willing to believe me, then contact me!