According to media reports on September 10, on September 9 this year, my country’s Food Administration announced that it would release oil reserves to the domestic market through auctions, aiming to ease the pressure on my country’s chemical industry and oil refining companies. Due to the pressure on raw material prices, this is also the first time that my country has “taken action” to regulate oil prices. As soon as the news came out, the price of U.S. crude oil futures for delivery in October fell sharply by 2.1%, closing at $68.14/barrel that day, a decrease of 1.67%.
In fact, as the epidemic gradually dissipates, all walks of life around the world are restarting Spirit”, the international market’s demand for natural gas, iron ore, oil and other bulk commodities continues to rise. As supply exceeds demand, the prices of these commodities have skyrocketed. Among them, international oil prices once exceeded US$75 per barrel. Such “hot” oil prices will inevitably cause dissatisfaction in the market.
U.S. President Biden has publicly called out the Organization of the Petroleum Exporting Countries (OPEC) and its partners countries, requiring member states of the organization to continue to increase oil supply. Taking into account the signs of a resurgence of the epidemic, OPEC+ finally ignored the pressure from the United States and insisted on increasing oil production by 400,000 per month starting from August this year. barrel/day. Although oil production has increased, it is still unable to meet market demand. OPEC+ predicts that oil supply will remain tight for the rest of this year, but will improve in 2022.
You know, while our country’s economy is developing rapidly, energy consumption is also very large. Currently, oil supply is tight, and the United States has encountered a “sudden disaster”. Hurricane Ida has hit the country’s offshore oil fields hard. As of September 8 this year, 77% of the country’s oil production capacity is still shut down, which has caused a strong rise in international oil prices. fluctuation. According to statistics, on September 8 this year, U.S. oil futures rose 1.4% to close at $69.3 per barrel, approaching the $70 mark.
Against this background, my country’s release of crude oil reserves to the market can be described as a “timely rain”. It will not only alleviate the urgent needs of Chinese oil buyers and allow them to draw from domestic supplies, It can also “dampen” the “vigor” of rising oil prices. </p
