Some analysts said that the Trump administration gave up sanctions for two reasons. The oil refineries along the GWhat is crude oil trading todayulf of Mexico rely heavily on Venezuela's crude oil imports. Once sanctions are imposed on Venezuela, it may interrupt the source of heavy oil for the oil refineries in the Gulf of Mexico.
Prior to this, the United States and Iran had a fierce war of words over sanctions. The United States insists on sanctions against Iran, and Iran threatens the United States. If Iran is sanctioned, it will block the Strait of Hormuz. Later, Trump did not have that tough attitude and asked to meet with Iranian leaders without any preconditions, but was rejected by Iran every time. The reason given by Iran is that Trump is too untrustworthy.
Declining output in Venezuela also pushed up oil prices. Venezuela is a member of OPEC with the highest production in Latin America. Relevant data show that, except for the large-scale strikes in late 2002 and early 200, Venezuela's current oil production is close to a zero-year low, less than half of 999 production.
The price of Brent crude oil is based on crude oil production from four North Sea oil fields in the United Kingdom and Norway. Therefore, local factors in the North Sea are a fundamental factor affecting the benchmark oil price. In recent years, with the continuous decline in North Sea oil field production, the global influence of Brent crude oil has gradually weakened. In terms of pricing power, WTI crude oil is no longer the only opponent it faces. Crude oil futures such as crude oil and Dubai crude oil are also ambitious. Analysts said that the commissioning of the oil field will not only increase Brent crude oil production, but also allow Brent oil prices to reflect the broader market.
Therefore, Trump's move will undoubtedly detonate the situation in the entire Middle East, and at the same time ignite global risk aversion, and it will even plunge the crude oil market into a huge panic. Perhaps people still think that Trump will have a bit of softheartedness, but these words of the Israeli Prime Minister undoubtedly shattered people's last hope.
Barkindo said on Tuesday that market rebalancing is a long process. If OPEC continues to imWhat is crude oil trading todayplement production cuts, internal disharmony may arise. Saudi Arabia will benefit from Iran’s losses, and it is well known that the two countries are very opposed in the region.
In addition, as far as the United States is concerned, before the mid-term elections in the United States, Trump put increasing pressure on Saudi Arabia to increase oil production and reduce prices. These prices have threatened to cancel Trump’s tax cuts. Economic growth.