The hottest OPEC postpones production reduction, a

OPEC postpones production reduction. The oil price is as low as $47

OPEC postpones production reduction. The oil price is as low as $47

December 3, 2008

[China paint information] due to the postponement of the organization of Petroleum Exporting Countries (OPEC) to December, it is to adapt to a relatively large pull. On December 17, the production reduction, coupled with the sharp decline in global stock markets, investors are generally bearish on the economic outlook, dragging down market expectations for oil demand. The international oil price fell below the $50 mark yesterday, and the January futures oil in New York was once as low as $47.58 in Asia, the lowest since May 2005; After that, it rebounded slightly, and the latest report was $48.75 as of 6:30 last night

the lowest level since May 2005

some analysts pointed out that at present, the economies of various countries still show no signs of improvement, so even if the oil production group reduces, the oil price is difficult to rebound significantly, and it is expected to continue to hover around $50 in the short term

challenge the $40 mark

the pig iron market price on the oil group continued to hold steady. At the weekend, it decided to postpone the discussion on whether to reduce production until the 17th, and issued a statement that the oil demand may be far lower than expected. Ali al Naimi, Saudi Arabia's oil minister, said that if the expectation of reducing production by 1.5 million barrels a day could be fulfilled by 80%, the oil group would not need to reduce production at the next meeting. The news disappointed the market target. In addition, the manufacturing data released by various countries in November generally fell to a record low, further weakening investors' expectations of oil demand. Yesterday, a large number of selling prices emerged in the New York market, and the futures oil in January fell sharply, falling below $48 in the Asian session, the largest one-day decline since October 10

analysts generally believe that the failure of the oil group to reduce production in time to respond to weak demand will give oil prices a chance to continue to bottom in the short term. Bloomberg quoted Tim Evans, an energy analyst at Citi futures perspective in New York, as saying that OPEC had "missed the opportunity to cut production as soon as possible to support oil prices", so the market would be favorable for short positions until the 17th. Some analysts also pointed out that the postponement of production reduction has led to an increase in oil inventories, while the global economy is deteriorating. The increase in oil prices without environmental experiments (high and low temperature boxes) may challenge the $40 level. Even if there is a rebound, it is difficult to quickly rise to the desired $75 level that the oil formation believes