The current round of domestic refined oil price adjustment will start on August 23 24:00. The current round of domestic oil price adjustment will be lowered, which will be the third time this year.
Entering this round of pricing cycle, international crude oil prices have been falling. On one hand, the delta virus continues to spread and suppress demand. On the other hand, official data show that China's daily crude oil processing volume decreased in July, rekindling market pessimism and oil prices fell again. WTI crude oil closed at a nearly three-month low. Although the inventory data routinely released by the U.S. Energy Information Administration (EIA) on Wednesday showed that the decline of U.S. crude oil inventories exceeded expectations, the general market concern about demand overshadowed the news. The spread of delta virus cooled demand expectations, and there are signs that the supply of oil producing countries, including the United States, is also increasing. As of August 18, Beijing time, the settlement price of the main contract in the U.S. WTI crude oil futures market had been reported at $65.21/ barrel. Under the background of the epidemic, delta virus has not been effectively controlled, which will continue to have a negative impact on future demand, and major institutions have also lowered their demand expectations in the coming months of the year. In addition to the supply side, OPEC is still in the production increase cycle. According to recent monitoring, the number of active oil rigs in the United States increased by 10 to 397 last week, the highest since April 2020, indicating that the crude oil production in the United States is gradually picking up, and the later supply is also a constraint factor of oil price. Affected by the decline of raw oil price, the retail price of domestic refined oil may be reduced for the third time.
In the later stage, the recent oil price is still in the market atmosphere of short supply, the worry of oversupply caused by oil producing countries' increase in production is lingering, and the demand is not improved. OPEC rejected the increase in production plan proposed by the United States. The market fundamentals are intertwined with long and short supply, and there is no obvious drive for the time being. In addition, the threat posed by delta virus to the global economy is also difficult to contact in the short term, The probability of a small reduction in the new round of retail price is high, and the price adjustment will be open in September 6, 2021.
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