In essence, crude oil varieties belong to an important branch of commodity market. Crude oil is regarded as the blood of modern industry and the main energy of human society at this stage. But in the long run, the crude oil market is facing certain pressure.
On the one hand, the interests of oil-producing countries are unevenly distributed and intrigued. Generally speaking, the Organization of Petroleum Exporting Countries (OPEC) is a loose alliance without a very strong leading country. This makes oil-producing countries face the situation of "I know you may increase production secretly, and I will increase production secretly" when controlling their own oil production, and this situation will make the efforts of various countries to limit production and protect prices go up in smoke.
On the other hand, mankind is also experiencing an energy revolution. The large-scale application of oil is the product of the third industrial revolution, but at this stage, countries headed by China are trying to replace the dominant position of oil in energy with electric energy as power. This stage is the transformation stage of new energy structure represented by new energy vehicles and lithium batteries. The development of clean energy such as photovoltaic and wind power will gradually provide cheaper, environmentally friendly and low-carbon alternative energy for electric vehicles. In this case, although oil consumption will remain at a high level in the short term, it will be gradually replaced by more environmentally friendly new energy sources in the long term.
Therefore, in the process of investing in crude oil, investors must pay attention to the changes in relevant fundamentals. In the process of investment, we should also keep in mind the principle of "investment is risky and trading needs to be cautious".