93 Comments 2024-05-16

International oil prices rise for four consecutive days

International oil prices have risen for four consecutive days, where will the future trend of oil prices go? A deep conversation about oil prices.

Have you felt the recent four-day consecutive rise in international oil prices? The fluctuation of oil prices, like our moods, sometimes rises and sometimes falls, always unpredictable.

1. The changes in the supply side push oil prices to the forefront.

When it comes to the rise in oil prices, the changes on the supply side are one of the main culprits. OPEC+, this "big family" composed of the Organization of the Petroleum Exporting Countries and non-OPEC countries, should have worked together to stabilize oil prices. But recently, their boat seems to be a bit shaky, and the plan to increase production is always not satisfactory. It's like when we plan a gathering, there's always someone who can't come at the last minute due to something, which is a bit disappointing.

Advertisement

Let's talk about American shale oil, which is a guy that makes people both love and hate it. What we love is that it has abundant reserves and can alleviate our energy pressure; what we hate is that its extraction cost is too high and it always conflicts with environmental policies. Recently, the shale oil production seems to be restrained by something, and the growth is slow, which makes people anxious to watch.

Moreover, the geopolitical situation in the Middle East is simply a "barometer" of oil prices. As long as there is a little movement there, the oil price is like taking a roller coaster, going up and down, which is thrilling. We, as onlookers, can only "see it in our eyes and be anxious in our hearts."

2. The recovery of demand has brought a spring breeze to the wings of oil prices.

The problems on the supply side are headache-inducing, but the recovery of demand has brought a breath of spring to the oil prices. As the global economy gradually warms up, the demand for oil is also rising. It's like the cup of hot tea we long for in winter, warm and indispensable.

Especially in emerging markets and developing countries, their economic development is like a horse that has broken free from its reins, unstoppable. The demand for oil is also soaring all the way, like a horse running with its owner, full of vitality.

However, the transformation of the energy structure has also brought great challenges to oil prices. The rise of renewable and new energy is like bringing a fresh stream to the traditional oil industry. Although they cannot completely replace oil yet, their freshness and environmental protection concept have already attracted many people.III. Future Oil Prices: To Rise or Fall? An Unknown Game of Chance

When it comes to the future trend of oil prices, it's truly an unknown game of chance. Just like when we play poker, no one knows who the winner will be until the very end.

Some analysts say that the tightness on the supply side and the recovery on the demand side are like giving oil prices a pair of wings, allowing them the potential to continue soaring. This statement, although a bit exaggerated, is not without merit. After all, the oil market is like a big family, where the relationship between supply and demand is interconnected and affects the entire system.

However, other analysts hold different views. They argue that high inventory levels and the substitution of new energy sources are like putting a "tightening spell" on oil prices, preventing them from moving recklessly. This statement also makes sense, as the market is not something that can be dictated by a single voice.

In addition to these factors, the global economic situation and policy environment may also have an impact on oil prices. Just like the weather in our daily lives, sometimes it's clear and sunny, and other times it's cloudy and overcast. Oil prices must also change in response to these "weather" conditions.