OPEC + may increase the scale of production reduction, and gasoline demand in the United States falls to the level of the 1980s

Yesterday’s EIA data showed that US crude oil and gasoline had accumulated a large amount of inventory. After the report, crude oil fell. However, a dozen minutes before the closing of the market, Algeria’s energy minister said that the OPEC + emergency meeting would discuss “large-scale production reduction, which may reach 10 million barrels per day, and the WTI oil price rose nearly $2.50 in a straight line. EIA report shows that crude oil increased by 15.18 million barrels, gasoline increased by 10.5 million barrels, heating oil increased by 40000 barrels, and crude oil production in the United States decreased by 600000 barrels / day last week. Refinery operating rates fell to an all-time low of 76%, with gasoline demand at its lowest weekly rate since 1980. Be alert to the surging and falling market after OPEC + meeting. At present, the market has reduced the global production by 10-15 million barrels / day, which is good for price in. In the short term, it is possible to make a short-term upward breakthrough, but it is difficult to break through the resistance near wti30, so it is necessary to be alert to the upward trend in the short term. The macro market began to speculate that there was a turning point in the US epidemic, with US stocks up more than 3%.

Industry highlights: 1. The data released by EIA shows that the growth rate of commercial crude oil inventory excluding strategic reserves in the United States was higher than expected in the week ended April 3, refined oil storage basically met expectations, while gasoline inventory growth was higher than expected. For the week ended April 3, EIA crude oil inventory changes actually reported an increase of 15.177 million barrels, with an expected increase of 9.679 million barrels, and a previous increase of 13.833 million barrels. Gasoline inventory actually increased by 10.497 million barrels, expected to increase by 5.821 million barrels, with the previous value increasing by 7.524 million barrels; refined oil inventory actually increased by 476000 barrels, expected to increase by 788000 barrels, with the previous value decreasing by 2.194 million barrels. US domestic crude oil production fell by 600000 barrels a day to 12.4 million barrels a day last week. US crude oil exports fell 322000 B / D to 2.833 million B / d last week, while commercial crude oil excluding strategic reserves imported 5.874 million B / d last week, down 173 thousand B / D from the previous week. Commercial crude oil inventories excluding strategic reserves increased by 15.177 million barrels to 484.4 million barrels, an increase of 3.2%.

2. Saudi Aramco used oil tankers to store crude oil as production increased to a record 12 million barrels per day. India began to replenish strategic oil reserves, which also helped stabilize the crude oil market. According to officials familiar with the matter, after the oil price plummeted, the Indian government asked state-owned refineries to take advantage of the falling oil price to purchase 15 million barrels of crude oil as strategic reserves. The purchase also meets the goal of stabilizing the global oil market and supporting demand, two officials said. Officials also revealed that the Indian government may require state-owned refiners to purchase crude oil in advance from Saudi Arabia, the United Arab Emirates and Iraq, and that the Ministry of finance of India has approved the funding application of the Ministry of oil.

3. Tass reported that Russia said it was ready to cut production by 1.6 million barrels per day. Near the end of the day, it was reported that 48 members of the US House of Representatives (435 representatives) jointly wrote to the crown prince of Saudi Arabia before the OPEC + + meeting, saying that failure to resolve the energy crisis would jeopardize the economic and military cooperation between the US and Saudi Arabia. The news triggered a rapid $3 / barrel rally from intraday lows.

4. OPEC + held a video conference at 4 p.m. Vienna time on April 9; G20 energy ministers held a video conference at 3 p.m. Riyadh time on April 10.