First of all, the global economic situation has undergone a severe test. As the most important economies in the world, the road to economic recovery in the United States and the euro zone is long and slow. If the epidemic is still not controlled at the end of the year, the economy is likely to embark on the road of slow recovery in the next few years, the economic situation is sluggish, and the demand for crude oil naturally declines, making it difficult to support oil prices. At present, in the next two or three years, the global economy is still full of uncertainties, the road to economic recovery is full of challenges, and crude oil prices will not rise on a large scale.
Second, the crude oil market continued to reduce production, but the market demand momentum was insufficient. Since March, the price of crude oil has plummeted, causing financial market volatility. Many countries and regions have stored a large amount of crude oil at low prices, and the demand for crude oil will not increase, but will weaken. For oil-producing countries, even if production is reduced, it is difficult to change the situation of oversupply in the market. Therefore, the probability of a long-term rise in oil prices in the future is low.
Third, the production cost of crude oil in oil-producing countries is low. Crude oil is called flowing gold, which also makes many oil-producing countries take off. Because of rich resources and mature technology, their crude oil cost is very low, similar to Saudi specialty oil, which may be around 7- 15, and the production cost of Russia may be around 14-22, that is to say, even if the price is very low, they still have profits, which is a reshuffle for the market, similar to American shale oil.
I'm Roswell Financial. Please pay attention to more questions. Welcome to exchange and discuss. I hope it helps you.