The Organization of Petroleum Exporting Countries stated in the production restriction agreement that the current oil market environment with contradictory supply and demand may have the opposite effect, which will harm producers and consumers and is not conducive to the sustainable development of the medium and long-term economy. The current oil market environment will threaten the economic development of oil-producing countries, hinder the investment in key industries, endanger energy security (it is difficult to meet the growing world energy demand), and challenge the entire oil market.
The validity of the production restriction agreement is only six months, and it is decided whether to extend it for another six months according to the market environment. The Organization of Petroleum Exporting Countries (OPEC) has set up an oversight committee, which includes Algeria, Kuwait, Venezuela and two non-OPEC oil-producing countries. Non-OPEC oil producers, including Russia, will cut their daily output by 600,000 barrels. Indonesia will suspend its participation in the ranks of net oil importers.
What is the impact of OPEC's limited production on the international futures market? The fundamentals of short-term oil strength have not changed, but the smooth sowing in South America and the expected concentration of imported soybeans from Hong Kong in February 65438 have aggravated the high risk. The OPEC production reduction agreement has limited effect on oil pulling. After the risk of the meeting is lifted, oil still needs more themes to stimulate. It is suggested that beans and palm oil should be operated cautiously or wait and see in the short term, and vegetable oil should be held cautiously with its back on the 5-day moving average.