reduce production and increase investment. What are the main oil-producing countries’ plans?
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As of the close of December 6, the price of light crude oil futures for delivery in January 2020 rose by US$0.77 to close at US$59.20 per barrel, an increase of 1.32%. London Brent crude oil futures for delivery in February 2020 rose $1.0 to close at $64.39 per barrel, an increase of 1.58%.
Dong Xiucheng: The increase in production cuts meets the needs of major oil-producing countries
Professor Dong Xiucheng: The production cut plan discussed by OPEC+ has a production cut quota of 1.7 million barrels per day, accounting for about 1.7% of the global crude oil supply. In addition, Saudi Arabia will continue to cut production by another 400,000 barrels per day based on its production quota, which is somewhat beyond market expectations. Overall, the increase in production cuts meets the needs of major oil-producing countries, because overall, the pattern of oversupply in the crude oil market has not changed. The main purpose of reaching a production cut agreement is to stabilize the crude oil market prices.
Liu Ge: Production cuts are no longer a "blockbuster" for the market
CCTV Financial Commentator Liu Ge: The market expects that this meeting will mainly produce oil-producing Congress to reach a production cut agreement because stabilizing oil prices is the consensus formed by these major oil-producing countries. The production cut agreement has been extended several times, so this production cut is no longer a "blockbuster" for the market. In addition, the world economy is currently facing great downward pressure, and production cuts are also hoped to stabilize international oil prices to a certain extent, but how big the effect is needs to be observed again.
Demand slows down. The crude oil market is starting to be anxious?
Dong Xiucheng: OPEC+ will decide on policies based on changes in oil prices
Professor Dong Xiucheng, the National Institute of Opening-up to the outside world at the University of International Business and Economics: This time the major oil-producing countries' production cut agreement will be implemented until the end of March 2020. It is also hoped to further observe the changes in oil prices, and also look at the actual production cuts of major oil-producing countries, and then make policy adjustments based on market demand and changes. But overall, OPEC's control over the crude oil market is declining.
Liu Ge: Saudi Aramco will go public and need stable market expectations
CCTV Finance Commentator Liu Ge: Saudi Arabia has been leading the production cuts because high oil prices can support fiscal revenue. In addition, Saudi Aramco will be listed and traded on Wednesday, and the market valuation will reach US$1.7 trillion, which requires stable crude oil market expectations and more motivation to stabilize oil prices.