On November 4, the U.S. WTI crude oil futures market prices rose sharply, with the settlement price of main contracts at $39.15/barrel, up $1.49 or 3.95%. Brent crude oil futures market prices rose sharply, with the settlement price of main contracts at $41.23/barrel, up $1.52 or 3.83%. US oil rose nearly 4% on Wednesday, mainly due to the rapid rise in oil prices and the sharp drop in US crude oil inventories after US President trump declared victory in the process of election results not yet produced.
Oil prices rose sharply in the session on Wednesday, mainly due to a public speech by the trump White House, who claimed that he had won the US presidential election, while there were still millions of votes to be counted and the final results were still not available. The market expected that Trump’s ruling policy would be favorable to oil prices, so it reacted quickly and prices rose sharply. It mainly takes into account Trump’s sanctions against Iran and his positive attitude towards the implementation of OPEC + production reduction.
In addition, the US commercial crude oil inventory data released by the US Energy Information Administration (EIA) on Wednesday also made a significant positive impact on oil prices. US crude oil inventories fell sharply last week, contrary to market expectations. U.S. commercial crude oil inventories fell 7.998 million barrels to 48442.9 million barrels in the week of October 30, after the market had expected an increase of 890000 barrels. Meanwhile, the net import of crude oil increased by 560000 B / d. Gasoline inventories increased by 1.541 million barrels to 276.65 million barrels. The market had previously estimated a decrease of 871000 barrels. Distillate stocks, including diesel and heating oil, fell 1.584 million barrels to 154644 million barrels, after a market forecast of 2 million barrels. Crude oil stocks fell sharply, mainly due to the reduction of production in the Gulf of Mexico caused by the hurricane. The decline in crude oil inventories and the rise in gasoline inventories are mainly related to the increase in processing capacity of refineries in the United States. According to EIA, the crude oil processing capacity of refineries increased by 164 thousand barrels / day last week, and the capacity utilization rate of refineries increased by 0.7 percentage points to 75.3%. On the whole, both the decline of crude oil inventory and the increase of refinery production in the United States on the premise of increasing net crude oil imports indicate that the economy is recovering slowly, bringing a certain boost effect to the market.
However, with the proliferation of new cases in Europe and the re implementation of blockade measures in some countries, such as France, the market may worry about the uncertainty of the future fuel demand outlook. Previously, the extension of OPEC + release and the advantages of the existing production reduction scale have been digested. In the medium and long term, all oil prices are still suppressed by the supply and demand side. In the short term, the US election is still pending, and Trump’s uncertainty may bring uncertainty to the oil market, which will increase the volatility of oil prices in the short term.
| Melamine |