On Tuesday, the price of WTI crude oil fell by "100%", once fell by 10% in intraday trading to 97.43 US dollars per barrel, and finally fell by 8.2% to 99.50 US dollars per barrel. This is the first time that the oil price has fallen below 1 100 USD since May, and it is also the lowest closing price of WTI crude oil futures since May.
At the same time, the price of Brent crude oil is not optimistic, falling by 9.5% to $0/02.77 per barrel. You may not feel the downturn in this figure, but you should know from a month ago that the oil distribution price exceeded $0/20 per barrel a month ago.
When the oil price falls below 100 USD, people will think, what's going on?
The epidemic must be one of the reasons. You can think that the epidemic has seriously affected the economy. Everyone tightened their belts, the demand for oil decreased, and the price naturally fell. That's understandable. According to relevant statistics, the global economic losses caused by the epidemic have exceeded 5 trillion US dollars, and more than 200 million jobs have been lost worldwide.
The Federal Reserve raised interest rates by 75 basis points, the largest single rate increase in 30 years, and the federal interest rate was between 1.5% and 1.75%. However, the inflation rate in the United States is still very high, reaching 8.6% this month, while the Fed's expectation is 2%, which is far from it.
From an economic point of view, the Fed may continue to raise interest rates. It is predicted that the federal interest rate may reach 4%. If so, the US dollar interest rate hike will continue, so the international futures market will definitely be greatly affected, and it will also affect the price of crude oil.
The crude oil market is a financial market, and confidence is actually very important. This fall in international oil prices also illustrates a problem. Investors are not optimistic about this market for the time being. Many people at Citigroup in the United States know that the financial oligarch in the United States, a group analyst, said on July 5 that if the economic recession seriously affects market demand, the oil distribution may drop to $65 per barrel by the end of this year and $45 by the end of 2023.
In fact, the decline in international oil prices is mainly due to the weak economic trend, which leads to the weakening of crude oil demand, which eventually leads to the increase in crude oil inventories and the decline in oil prices.
A sharp drop in oil prices will definitely affect domestic refined oil prices. According to China's existing mechanism, the next round of domestic refined oil price adjustment will start at 24: 00 on July 12. Some professionals predict that if international oil prices continue to fall, domestic refined oil prices may be lowered for the third time this year.