Why did the international oil price fall sharply?

The reason for the sharp drop in oil prices is the global economic recession, the high dollar and the relative turmoil in the international situation. Besides supply and demand, geopolitics also affects oil prices. The influence of many factors makes the oil price fluctuate violently and unpredictable, and the international oil price can be described as a sharp drop.

Since the beginning of 2022, the international oil price has risen, and the domestic oil price once reached its peak in June and July, approaching the 10 yuan mark, and experienced more than ten consecutive rises. However, with the implementation of a series of policies such as interest rate adjustment in the United States, oil prices may fall again in the future! No, the good news is coming soon. Let me tell you some details:

First of all, there are three main reasons for the decline in oil prices.

1, global economic recession

The global economic recession has led to a decline in refined oil consumption. Generally speaking, all walks of life are relatively depressed. The consumption of crude oil and refined oil is reduced, the demand is weak, and the supply exceeds demand, which will inevitably lead to price cuts.

2. The dollar is at a high level.

As a result, the international oil price is under pressure, and the Federal Reserve is likely to raise interest rates in June 5438+February, which also affects the international crude oil price.

3. The international situation is quite turbulent.

The international situation is turbulent, the market uncertainty is rising, the future oil price trend is not expected well, and the wait-and-see atmosphere is strong, which is also unfavorable to the crude oil market.

International oil prices have fallen sharply. In the past three weeks, international oil prices have been falling continuously, even exceeding 15%. The price of crude oil in the United States has dropped from $65,438+000 at its peak to $84 per barrel. In addition, the price of London Brent crude oil futures for delivery in February 2023 fell by 0.09 USD to close at 86.88 USD per barrel, a decrease of 0. 10%.

2. What are the main factors affecting the current decline in oil prices? First of all, the analysis has the following five points.

1, because of the severe global economic downturn, COVID-19's overseas epidemic situation continued to deteriorate, resulting in a sharp slowdown in economic activities and a sharp drop in oil demand.

2. The unpredictable international dispute situation this year is the fundamental reason for the high oil price in 2022. When a thing reaches its peak, it will inevitably fade away and return to normal.

3. Saudi Arabia launched a price war, and several major oil-producing countries indicated that they would expand production and participate in market share competition. The sharp increase in crude oil production and inventories further depressed oil prices.

4. Saudi Arabia, Russia and the United States are the three largest crude oil exporters in the world, and Russia is the main origin of fuel in Europe and other places. By virtue of its geographical advantages, Russia has a special fuel transportation pipeline, thus reducing the transportation cost to Europe.

Affected by the European Union's price limit on Russian oil and the Federal Reserve's efforts to reduce interest rates, international oil prices have maintained an upward trend in the Asian market. The decision of Russia's oil price ceiling may cause a decline in the supply of crude oil market and support oil prices.

The impact of low oil prices on us can be described as "mixed feelings". The fundamental reason for this round of international oil price decline is that supply exceeds demand. As the world's largest importer of crude oil, we could have benefited from the drop in oil prices, but due to the epidemic, domestic supply exceeded demand. On the whole, there is a high probability that oil prices will continue to decline, and car owners can ride freely again. In the short term, the price of crude oil will fluctuate between $ 80- 100, but with the popularity of pure electric vehicles, the oil price will continue to fall in the long term.