Reported over 1 year ago
Provided by Guo Hua Securities Futures, Huang Yanhong summarized on June 18, 2024, at 4:10 PM that recent OPEC+ meeting announced member countries' plans to gradually end voluntary production cuts starting in October this year, causing oil prices to plummet to new lows in almost four months. However, with energy agencies such as OPEC and EIA releasing positive outlook reports for the oil market in the second half of the year and the market rebounding due to the expiration of short positions contracts, oil prices have now recovered to pre-OPEC+ meeting levels. Technically, light crude oil futures have reached the upper resistance zone after several days of rebound, maintaining stability above short-term averages, with technical indicators mostly leaning towards a bullish stance. Despite the rebound satisfying twice near the current levels, short-term correction pressure still exists due to recent weak fundamental performance, advising cautious operations by observing whether the downward quarterly line can provide sufficient buying support. With US oil production continuously exceeding expectations and investors anticipating an increase in summer demand, uncertainties in China's economic growth and oil demand continue to overshadow the market. The International Energy Agency (IEA) has lowered China's oil demand prospects due to weak economic growth, with recent data showing a slowdown in May industrial output and fixed asset investment, leading state-owned refineries to plan maintenance shutdowns internally and externally, bringing overall refining activities to the lowest level this year.
Source: YAHOO