There Are Differences In OPEC + Internal Production Reduction Plan, And The Oil Price Will Stop Rising And Wait For The Meeting To Decide

Recently, the market came short news, German Chancellor Angela Merkel hinted to extend the blockade measures, OPEC + delayed crude oil production plan, there are still internal differences, the effectiveness of AstraZeneca new crown vaccine has also been questioned, dampening the market risk preference sentiment. U.S. stocks were closed on Thursday due to the Thanksgiving holiday. After Friday's opening, WTI oil prices plummeted 98 cents, or 2.14%, to $44.73/barrel. The closing time will be advanced to 02:00 on Saturday. Crude oil futures fell 81.80 cents / barrel to close at US $47.1%. In the previous trading day, cloth oil rose 75 cents, or 1.57%, to $48.61/barrel.

Germany's largest economy will tighten restrictions on private gatherings, but schools and most businesses remain open, according to an agreement reached between Merkel and leaders of 16 German states on Wednesday. The restrictions, which would have expired at the end of November and will continue until December 20, are likely to continue unless the infection rate drops unexpectedly fast. German Chancellor Angela Merkel released more worries about the current situation of the epidemic.

In addition, two days after AstraZeneca and Oxford University announced the preliminary results of the effectiveness of their experimental new crown vaccine on the 23rd, they issued a statement admitting that there were key errors in the vaccine doses accepted by some research participants. This raised doubts about the preliminary results of its research and development of the new crown vaccine, which weakened the market optimism caused by the optimistic development process of the vaccine Back.

At the same time, the oil price itself has continued to rise, short-term has also accumulated a lot of profit. After that, OPEC semi annual meeting will follow, and the increase of market uncertainty will also prompt long investors to close their positions directly. All of this has led to downward pressure on oil prices. Starting next Monday, the wording of the OPEC meeting will attract market attention to determine whether oil prices are likely to rise again.

According to the source, Pemex, Mexico's national oil company, is about to sign the 2021 crude oil hedging contract, which seems to be ready for the follow-up market situation of the oil market. On April 20, this year, the "negative oil price" event of crude oil hedging has made up for the company's loss of crude oil export revenue.

The recent rise in oil prices has challenged the decision of the organization of Petroleum Exporting Countries (OPEC +) and its allies (OPEC +) to suspend production growth plans. The rise in oil prices has provided reasons for those Member States, especially Iraq and the United Arab Emirates, who are reluctant to extend production cuts. On November 19, the tension between the representatives of the United Arab Emirates and the representatives of OPEC + over the oil production reduction quota intensified. The UAE was quite dissatisfied with the production reduction quota it had undertaken, and even considered withdrawing from the OPEC + oil production reduction alliance. Before OPEC + will hold a meeting to discuss postponing production increase. Iraqi officials have criticized OPEC, saying the political and economic conditions of Member States should be taken into account before asking them to slow down their oil production activities. OPEC president warned that if production is increased now, there will be a new danger of oversupply next year. OPEC experts expect crude oil inventories to rise in the first quarter if production continues to increase. Market analysis suggests that if the organization decides to start increasing production in January next year, USOC may fall by $5-10.