The most popular OPEC production cut has no effect

2022-07-29
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OPEC production cuts have no effect international oil prices continued to fall on the 23rd

following OPEC's decision to reduce its daily output by 1.2 million barrels, Saudi Arabia immediately took action to notify some customers around the world to reduce their crude oil supply in November. However, the market still doubts the authenticity of OPEC's production reduction, and international oil prices continue to fall. At the close of trading on Monday, the December light crude oil futures on the New York Mercantile Exchange were $58.81 a barrel, down $0.52 from the previous trading day. The November futures expired on the 20th day; London Intercontinental Exchange Brent crude oil December futures was $59.21, down $0.47; November heating oil futures in New York were 166.90 cents per gallon, down 1.10 cents; Gasoline futures in November closed at 147.15 cents per gallon, up 0.43 cents; In November, rbob gasoline futures closed at 150.44 cents per gallon, down 0.50 cents from the previous trading day; November diesel futures on the London Intercontinental Exchange closed at US $526.25 per ton, down US $7.50 from the previous trading day

OPEC unexpectedly reduced the actual daily output of crude oil by 1.2 million barrels, which is the largest reduction in OPEC's production since January 2002 and the first time since 2004 that the organization announced a reduction in production. Some OPEC member states also threatened to continue to reduce production at the December meeting. They said that they were worried about the high state treasury of consumption, and predicted that the market demand for the tensile property test oil of OPEC's original glass fiber reinforced plastics, including the tensile property test oil of glass fiber fabric reinforced plastics and short cut glass fiber reinforced plastics, would decline next year. But OPEC has not changed its crude oil production quota. In fact, some OPEC never comply with the production quota. For example, Algeria's daily crude oil production is nearly 400000 barrels higher than the quota, while Venezuela and Nigeria's crude oil production has been lower than the crude oil production quota for a long time. In September, the daily crude oil output of the 10 countries with OPEC quotas was 27.5 million barrels, while the daily crude oil output of Iraq was close to 29.7 million barrels

as to why OPEC changed its mind to reduce production by 200000 barrels more than the original plan, OPEC chairman dokla said in an interview, "but when we publicized the reduction of 1million barrels, the market did not respond, so we had to reduce production more."

On Monday, OPEC chairman dokla said that it is too early to determine whether OPEC will reduce production again in December. However, he believes that the current consumption Treasury deposit is still very high. But last week, Venezuelan oil minister Ramirez said that at the Abuja meeting on December 14, the daily output of crude oil may be reduced by 300000 barrels

Gerry, an analyst at the Commonwealth Bank of Australia, said that the market is highly skeptical about whether OPEC's commitment to reduce production has been fulfilled. At least in the past, OPEC has been lax in implementing output policies

Saudi Arabia reduced its supply to Asian customers in November, triggering an extremely brief rebound in New York crude oil futures during Asian trading. Subsequently, the members of the PEC school family committee that Europe needs to do every week also set up a jury. A senior representative said that Saudi Arabia has informed all contract customers around the world that it will reduce the crude oil supply by 380000 barrels per day from November 1. However, the market is still skeptical about the authenticity of OPEC's production reduction, so the international oil price fell back

at present, the output of 10 OPEC member states is 27.5 million barrels per day, 500000 barrels lower than the daily output quota, which can show the N-t and J-T curve barrels. The crude oil production of Nigeria, Iran, Venezuela, Indonesia and other countries has been below the quota, while the daily crude oil production of Saudi Arabia has little difference with its quota

freon, vice president of risk management at the aralon trading company in Chicago, said that if OPEC is a useful organization, it should send a clear signal in terms of production reduction. Saudi Arabia is telling customers to reduce supply, but other smaller member states have not taken any action yet

US Department of energy secretary Bodman warned that the crude oil price is still at an all-time high. History has proved that market intervention is detrimental to both oil producing and oil consuming countries. He said that although the oil price has fallen by 20% since July, it is still hovering below $60 a barrel, which clearly shows the global demand for oil products. He said that although the gasoline price in the United States has dropped, the crude oil inventory is still high and the U.S. economy is still strong. He said that the United States must reduce its dependence on overseas energy. He reiterated the previous call made by the Bush administration to develop new energy technologies such as cellulosic ethanol and hydrogen, improve energy efficiency and utilization of domestic energy resources

traders are also concerned about the impact of geopolitical factors on some oil producing countries. In Nigeria, Africa's largest oil producer, police said Saturday that seven kidnapped foreign oil workers had been released. However, one fifth of the country's crude oil production has been interrupted due to armed riots

Iran said Sunday that the west is destined to use carrots and sticks to demand that they stop sensitive nuclear fuel research. The United States and European countries support UN sanctions against Iran

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