Oil prices, as a much-discussed "car food", have frequently been on the hot search list recently, and this time it is not because of a "price increase", but because oil prices experienced a "sharp drop" just a few days ago. The huge drop has also won unanimous praise from car owners and friends. Domestic gasoline and diesel prices (standard products, the same below) have been reduced by 320 yuan per ton and 310 yuan per ton respectively.
However, regarding this round of oil price decline, Oil Price Breakfast believes that it is too early to be too happy. Why?
From the current point of view, all supply and demand parties are still in an "undecided" state, especially the uncertain factors of all parties have created a new "general environment". The latest news shows that the export of and from Libya has been interrupted due to the political crisis. The sharp decline that many bloggers said may "not happen". What you need to know is that Libyan exports have dropped to about one-third of the level of the same period last year, and insufficient oil may become the norm.
Not only are domestic car owners in my country dissatisfied with the rise in "oil prices", but even US President Biden is "uneasy" about the rise in oil prices.
Biden has frequently visited Middle East oil-producing countries recently. Although Biden visited Saudi Arabia this month, the president personally took action, but Saudi Arabia failed to fulfill its commitment to increase production. OPEC (OPEC+) is an important oil producer Nigeria The decline in output is even more severe, with daily output falling by 100,000 barrels to 1.2 million barrels, the lowest level since the country became a major oil producer.
In the early morning of July 2, the U.S. Commodity Futures Trading Commission (CFTC) released its weekly position report. Data showed that as of the week of June 28, the speculative net long position in WTI crude oil futures increased by 11,488 lots to 236,154 lots. Some investors believe that oil prices will still rise temporarily.
Sources pointed out that short-term oil price volatility will continue to amplify, and the current tight global energy supply will still provide key support to oil prices.
Regarding the decision to increase production on the supply side, some experts have put forward different opinions, believing that this may be a "delay measure." Experts believe that " most member countries except Saudi Arabia and the United Arab Emirates are unable to increase production capacity, so OPEC+ Thursday's decision is very unlikely. To a large extent, it is just symbolic, and it is difficult to play a significant role in stabilizing oil prices.”
Regarding the hot discussion on the Internet, whether ethanol gasoline is really better than No. 92 and No. 95 gasoline. From an environmental perspective, ethanol gasoline has "less tail gas emissions" than 92 and 95 No. gasoline. After ethanol is burned, it will only produce carbon dioxide and water, both of which can be seen everywhere in the air and are very friendly to the ambient air.
In terms of the market, adding 10% ethanol is of great significance to alleviating oil reserves. The energy storage pressure of strategic oil reserves will be reduced. The recovery of crude oil reserves will drive the consumption upgrade of industrial owners, thereby reducing the pressure to sell reserves.
However, in terms of price, there is still a gap between gasoline and ethanol gasoline. According to Oil Price Breakfast, the current price of ethanol gasoline is nearly 30% higher than that of gasoline. The increase in fuel consumption has made many car owners shy away from "ethanol gasoline".
Would you choose ethanol gasoline or gasoline? Please leave a message in the comment area to discuss. It is said that some areas such as Jilin and Heilongjiang can only use ethanol gasoline. The editor said that he did not understand it. Is this true?
