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European Oil, Gas Sector Sentiment Hit by Shell Update -- Market Talk
Did Trump get what he wanted? OPEC has initiated a new round of supply shocks, and the global oil market may face a "surplus wave".
The OPEC+ online video conference announced an increase of 0.548 million barrels per day in August in just 10 minutes, exceeding market expectations, marking a significant policy shift for the organization from production cuts to reclaiming market share. This move will intensify the risk of global crude oil supply surplus, with Goldman Sachs forecasting that oil prices will further drop to $60. Analysis indicates that low oil prices help meet Trump's call for lower fuel costs but put pressure on profitability for U.S. shale oil companies and OPEC member states.
The OPEC+ reached an agreement to increase production, raising concerns about supply surplus, causing oil prices to fall sharply.
International oil prices continue to fall, after OPEC+ reached an agreement to implement an unexpectedly higher production plan next month.
[Futures Hotspot Tracking] OPEC+ has once again exceeded expectations with increased production. Is the recent drop in Crude Oil Product a short-term adjustment or a long-term trend?
On Monday's opening, domestic Crude Oil Product futures opened lower across the board, with SC Crude Oil and fuel oil Block Orders both dropping over 2%. OPEC+ increasing production beyond expectations will bring Bearish sentiment to the oil market, and the pressure of loose supply and demand as well as inventory accumulation in the Crude Oil Product market still exists in the medium term.
OPEC+ suddenly unleashes a massive increase in production, the global oil market is locked in a state of surplus.
The latest oil supply shockwaves released by the OPEC+ alliance will exacerbate the global Crude Oil Product oversupply in the second half of this year. This move responds to the call by U.S. President Trump to lower RBOB Gasoline prices, while also putting price pressure on oil-producing countries worldwide.
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