1. The oil price is already relatively high, and the pressure to continue to rise is relatively high:
2. EU and Saudi Arabia will continue to increase crude oil supply:
3. Speculative oil futures funds continue to make profits.
The rise in oil prices has made many people feel incredible. At the same time, the fall in oil prices has also caused many people to panic, fearing that they will rise and fall. This is the charm of the capital market. International oil prices plunged 6% on Monday. The main reason for panic diving is that oil prices have risen sharply. Is it too big to continue to rise? At this time, people who profit from oil futures began to cash in their own profits; At the same time, Saudi Arabia and the European Union also began to increase oil supply, which was a direct blow to oil prices. This is really bad news, which is the real reason why international oil prices rose by 6% on Monday.
First, the position of oil price is already relatively high, and it is very difficult to continue to rise.
No product or substance can keep rising, and if it rises too much, it will definitely encounter pressure. The oil price has increased by about 40% in the last three months, which is already a very scary data. Oil prices have reached a relatively high level, and the increase is also relatively large. It is difficult to continue to rise at this time, which is one of the reasons for panic diving.
Second, the reason why the EU and Saudi Arabia will increase their supply is bad news for oil.
Economics tells us that under the condition of constant demand, if supply increases, prices will definitely fall. Oil prices have been rising, which makes many countries feel very dissatisfied. The European Union and Saudi Arabia decided to increase oil supply and directly create bad news for oil, which was the most direct reason for the oil diving on Monday.
Third, speculative oil futures funds continue to make profits.
Rising oil prices have made many bulls profitable. At this time, there is not much room for oil to rise, and they need to take profits, which has also led to a sharp drop in international oil prices.