Last month, the May contract of WTI crude oil futures suffered the craziest sell-off in history on the expiration date, creating the first negative oil price in history. I believe all traders are still fresh in their minds.
At 2:30 a.m. on May 20, the WTI crude oil futures June contract will also be completed. The last transaction, the last electronic transaction is completed at 5:00 am. However, this time the plot is reversed! The price of WTI futures crude oil June contract, which is approaching its expiration date, continues to rise! Yesterday evening, U.S. oil futures continued their gains during the day. Among them, the intraday increase of WTI crude oil futures June contract once exceeded 12%, and the intraday increase of WTI crude oil futures July contract also expanded to more than 10% around 10 o’clock last night.
As of the close, the WTI crude oil futures June contract closed up 8.121% at $31.82 per barrel, continuing last week’s nearly 19% increase. Brent crude oil futures for July closed up 7.11% at $34.81 per barrel. The more actively traded July WTI crude oil futures contract also rose 8% to $31.89/barrel, while the August contract rose 7.4% to $32.33/barrel. The crude oil futures 2006 contract of the Shanghai Futures Exchange closed up 4.22% in night trading at 274.10 yuan/barrel. SC2007, the main crude oil futures contract on the Shanghai Futures Exchange, closed up 4.41% in night trading at 274.6 yuan/barrel.
Before the market opened this morning, CME lowered the position margin requirement for the June contract of WTI crude oil futures by 25% from US$12,000/contract to US$9,000/contract. After the opening, the WTI crude oil futures June contract opened up 3.2% and is now trading at $32.83/barrel, which is more than 10% higher than yesterday. The WTI crude oil futures July contract opened more than 2% higher and is now trading at $32.25 per barrel.
In terms of U.S. stocks, news about the epidemic has brought benefits to the international market. The U.S. company Moderna announced positive interim data for the first phase of the new coronavirus mRNA vaccine, saying that the vaccine MRNA-1273 is It is safe and well-tolerated. The final phase of vaccine trials is expected to begin in July. The vaccine helps the body produce antibodies against the new coronavirus. Preliminary human safety studies have found no major safety issues.
Boosted by the news, U.S. stocks rose for three consecutive days. As of the close, the Dow closed up more than 900 points, the Nasdaq rose 2.44%, and the S&P 500 rose 3.15%. Airline stocks rose sharply, with Boeing closing up nearly 13%, leading the Dow. Azul rose 32.62%, Delta Air Lines rose nearly 14%, and Southwest Airlines rose 13.39%. Many U.S. technology stocks closed higher. Apple rose 2.36%, Amazon rose 0.68%, Netflix fell 0.35%, Google rose 0.88%, Facebook rose 1.1%, and Microsoft rose 0.96%.
In addition, Federal Reserve Chairman Powell once again stated that the scope and speed of the economic downturn are unprecedented, and data show that output will decline sharply in the second quarter. The Fed will use all tools to help the economy and keep interest rates near zero until the economy gets back on track.
In terms of commodities, COMEX gold futures closed down 1.26% at US$1,734.1 per ounce, and COMEX silver futures closed up 1.46% at US$17.32 per ounce.
Plot reversal? Oil prices continue to rise, with many varieties in the energy and chemical sector rising
As for the WTI crude oil futures June contract, which has surged near the expiration date, some analysts said that WTI crude oil has rebounded due to logistics Restrictions have prevented shorts from taking delivery in the market. In sharp contrast to last month, today’s oil prices reflect the market’s optimism, although future gains may be limited, in part due to rising oil inventories.
In terms of intraday trading, during yesterday’s daytime trading session, most domestic futures markets closed higher. Among energy and chemical sector varieties, INE crude oil rose by more than 5%, and fuel and styrene rose by more than 3%. But methanol fell more than 2%.
In this regard, Yu Pengsen, an energy researcher at Zhaojin Futures, said that since last Friday night trading, international oil prices have risen sharply. On the one hand, this is because oil prices were previously low. There is a rebounding demand, and the international market has been working hard for the recovery of the oil market; on the other hand, the supply and demand fundamentals of the crude oil market have shown better changes, with U.S. production continuing to decrease, inventories in the Cushing area also declining, and U.S. refineries Construction starts increased.
Market news said that Russian Energy Minister Novak said yesterday that Russia promised to strictly abide by the OPEC+ oil agreement. In addition, according to foreign media reports, Saudi Arabia and Kuwait will close the Al-Khafji oil field in the common neutral area from June 1, further reducing production by 140,000 barrels per day.
“Compared with the rise in crude oil prices, downstream demand is poor, inventories are high, the expected peak season has not driven consumption, and market confidence has collapsed, resulting in methanol and other energy sector products. Weakened callback.” Yu Pengsen believes that market confidence is the most important issue facing the current methanol market. During the period when the total market demand remains stable and increases slightly, the backlog of inventories and the low price of crude oil have a greater impact on market confidence. Seriously, if foreign countries do not take certain measures to effectively reduce production and supply, the short-term contradiction between supply and demand will be difficult to change, and foreign markets may also face the problem of inventory expansion.
“In the medium term, international oil prices must be bullish, but they require a balance between the supply side and the demand side. Crude oil below US$40 per barrel will not allow major oil-producing countries to return to profitability. .” Yu Pengsen said that before the oil price rises to 40 US dollars per barrel, the impact of crude oil on the energy and chemical sector will remain weak. The current prices of energy and chemical sector varieties have generally reflected the expectations of rising oil prices and are operating at a relatively high level. , short-term oil prices are just the fulfillment of market expectations. Once oil prices weaken or the increase is less than expected, the energy sector varieties will also weaken and decline.
Huawei responds to the US “blocking”, and the Ministry of Commerce strongly supports it!
Facing the United States47 cases.
Moderna in the United States announced positive interim data for the first phase of the new coronavirus mRNA vaccine, saying that the vaccine MRNA-1273 is safe and well-tolerated, and the final phase of the vaccine is expected to begin in July Tests have shown that the vaccine helps the body produce antibodies against the new coronavirus, and preliminary human safety studies have found no major safety issues.
Yesterday, according to CCTV news reports, President Xi Jinping announced China’s five major measures to promote global anti-epidemic cooperation during his speech at the opening ceremony of the 73rd World Health Assembly video conference. First, China will provide US$2 billion in international assistance within two years to support countries affected by the epidemic, especially developing countries, in their fight against the epidemic and economic and social recovery. Second, China will cooperate with the United Nations to establish a global humanitarian emergency response center in China. Warehouses and hubs, strive to ensure the supply chain of anti-epidemic materials, and establish green channels for transportation and customs clearance; third, China will establish a cooperation mechanism with 30 counterpart hospitals in China and Africa, and accelerate the construction of the headquarters of the African Centers for Disease Control and Prevention; fourth, China’s new crown vaccine research and development has been completed and Once put into use, it will be used as a global public good and China will contribute to the accessibility and affordability of vaccines in developing countries; fifth, China will work with members of the G20 to implement the “Debt Service Suspension Initiative for the Poorest Countries” , and is willing to work with the international community to increase support for countries that are particularly severely affected by the epidemic and under great pressure to help them overcome current difficulties.
Economic recovery policies in various countries are also being implemented. According to market sources, Germany and France have called for the establishment of a European recovery fund worth 500 billion euros to help the region quickly recover from the crisis. Spanish Prime Minister Sanchez commented that France and Germany’s 500 billion euro EU recovery fund measures are the right direction.
A spokesman for the International Monetary Fund said that the IMF has provided $21 billion in emergency epidemic financing to 56 countries.
However, according to CCTV News, a report released by the Special Committee of the U.S. House of Representatives responsible for overseeing the federal government’s response to the COVID-19 epidemic showed that the US$2.2 trillion “New Coronavirus Aid, The $500 billion Treasury Department fund established in the Relief and Economic Security Act has been poorly managed and almost no money has been lent. </p
