[SNN Review] Oil prices rose by more than 7% to hit a 13-month high! Experts warn to be cautious in chasing high

SMM3 March 8: the recent price of crude oil continued to rise, the last period of crude oil rose three times in a row, today's last period of crude oil soared more than 7% to brush a 13-month high. As of press time, the main contract of the previous period of crude oil rose 7.21% to 441.4 yuan per barrel, US oil rose 1.06% to 66.99 US dollars per barrel, and oil distribution rose 0.83 per cent to 70.28 US dollars per barrel.

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The sharp rise in oil prices was mainly boosted by the following factors:

Saudi crude oil equipment was attacked. According to Saudi state media, Saudi officials said an oil warehouse in Rastanula was hit by drones, resulting in no casualties and no property damage. A spokesman for the Saudi Ministry of Energy confirmed that Saudi Aramco's facilities had been deliberately attacked again, the Saudi news agency reported. The city of Zahran is an important oil town in eastern Saudi Arabia and the headquarters of Saudi Aramco, the world's largest oil company, while the port of Rastanula is one of the most important oil ports in the Gulf region and even in the world. Most of the crude oil and its products produced in eastern Saudi Arabia are briefly stored in this port and shipped for export.

OPEC meeting continues to reduce production. The results of the OPEC meeting surprised the market and decided to extend crude oil production in March as a whole to April, but allowed Russia and Kazakhstan, under the influence of seasonal consumption patterns, to increase slightly by 130000 b / d and 20, 000 b / d respectively in April.

In addition, on the macro side, the US non-farm payrolls data for February was much higher than expected, indicating that the economic recovery was better than expected, boosting the outlook for crude oil demand.

However, analysts warn that the risks are also increasing along with the sharp rise in oil prices. The number of investors leaving the market at a profit may increase. At the same time, spot crude oil sales have slowed and demand is not expected to recover until the third quarter, suggesting that price increases cannot be guaranteed. And the return of oil prices to pre-epidemic levels also encourages US oil drillers to resume well production, restricting the rise in oil prices.