According to local Saudi media reports, Saudi Arabia, the world’s largest oil producer, announced on the 3rd that due to strong crude oil market demand, Saudi Arabia plans to increase most of its exports to Asia in July. Grade crude oil prices.
Saudi Arabia raises the price of crude oil exported to Asia in July
Oil giant Saudi Arabia is obviously optimistic about future oil prices. Have some confidence. The media reported on June 3, local time, citing a pricing document that the official selling price of crude oil exported by the Saudi National Petroleum Company, also known as Saudi Aramco, has increased overall in July, of which 7% of the Arabian Light crude oil sold to Asia. The monthly selling price increased by US$0.20/barrel compared with June, and the price of medium crude oil increased by 10 cents/barrel. The price of Arabian light crude oil exported to the Western and Northern European markets increased by US$1.00/barrel, and the price of heavy crude oil increased by 60 cents/barrel. US cents per barrel, the price of crude oil shipped to countries along the Mediterranean Sea has also increased, and only the price of crude oil sold to the U.S. market has remained unchanged from June.
As usual, Saudi Aramco decides at the beginning of each month whether to adjust the selling price of exported crude oil, and this adjustment is also One of the important indicators of the international crude oil market. Although this increase in oil prices was in line with expectations, the magnitude of the increase also exceeded market forecasts.
Many analysts said that crude oil prices have risen by about 35% since the end of last year, and the popularity of vaccines and economic stimulus measures introduced by various governments have also boosted oil prices. Demand is growing, and the active production cuts by oil-producing countries since May last year have reduced global oil supply by nearly 2.9 billion barrels, accelerating the rebalancing of the market.
Today, the surge in demand brought about by the global economic recovery has caused the excess oil accumulated during the epidemic to be almost consumed Finally, inventory will decrease rapidly in the second half of the year.
The market generally expects that although there are still uncertainties in the future, with the arrival of summer, U.S. gasoline demand continues to rise, coupled with Iran’s return to the international crude oil market, the impact is relatively high Limited, international crude oil prices are likely to continue to rise in the medium to long term.
What will be the impact of rising oil prices?
How do you view the continuous rise in North Sea Brent crude oil futures prices in international oil prices, returning to US$70/barrel?
Financial commentator Wang Chao: The rise in crude oil prices will directly affect the three major areas
What will be the impact of rising crude oil prices? In addition to the higher cost of refueling for ordinary people, the increase in crude oil prices will also affect the industry more. Crude oil has always been called the “mother of industry”. If crude oil catches a cold, all downstream industries will sneeze and even have a high fever. Its price fluctuations affect all aspects of daily production and life, and deserve everyone’s attention.
Good for upstream companies
For the upstream mining and refining industries, the increase in crude oil prices The increase will directly increase the gross profit margin of related companies, especially for companies with abundant oil reserves, the benefits are self-evident.
For midstream companies that use crude oil as raw materials, if the rising cost pressure can be fully transmitted to Downstream, the establishment of a rising price trend will also bring about the need for inventory replenishment and the appreciation of its own inventory.
For enterprises with weak downstream bargaining power, the inability to pass on the cost of rising prices of upstream raw materials to consumers will directly lead to a decline in profits or demand. shrink.
Influence investment, we should pay attention to the bargaining power of companies preparing for investment
If investors choose energy and chemicals As an investment target for a similar company, the most critical indicator is its bargaining power with upstream and downstream companies. If a listed company has the status of an industry leader, can lock in profits, and fully enjoy the dividends brought by price increases, it is worth paying more attention to.
Imported inflation? The pressure is generally controllable
Many people are worried about imported inflation. This pressure exists, but the pressure is generally controllable. The reasons are as follows: 1. Global crude oil demand has returned to marginal weakening; 2. OPEC+’s “increase in production and guaranteed quota” is still the main tone; 3. There is no basis for a “weak dollar” in this round of oil price rises.
Even if there is a possibility that oil prices will strengthen further in the short term due to the mismatch between supply and demand, domestic management has already managed the expected increase in domestic commodity prices.