From the environment of the global oil trade market, in recent years, the global new refining capacity mainly concentrated in the Middle East, India and Chinese. Expected 2020 global oil demand reached 49.5 tons of finished products, however, can be extended from the global mixing rate, the global oil market has oversupply.

Once some people questioned why a large number of China’s imports of crude oil but also exported to overseas oil?

In fact, crude oil imports and exports of refined oil does not exist between. On the contrary, Japan, South Korea, Singapore these nearly 100% imported crude oil countries have always been active in the Asia Pacific oil exporter, and oil processing has become an important economic industry in these countries.

According to Mao Jiaxiang, vice president of Sinopec Research Institute of economics and technology introduction, since 2010, China’s average annual growth rate of oil consumption has been reduced to 4.2%. which, in 2015 China’s diesel consumption has reached a peak, is expected in 2025 and 2035 gasoline consumption and aviation kerosene consumption will have reached the peak.

In the supply market, at present, China’s oil refining capacity of more than 7 tons of excess capacity, and “13th Five-Year” during the refining capacity will be further expanded. This means that the problem of excess refining capacity will be further highlighted.

China National United Oil Corp President Zhao Yong at the fifth session of China international oil trade conference said, in fact, the first three quarters of this year China’s oil export volume has exceeded last year’s total. At present, China’s refined oil mainly exports to Southeast Asia, are also part of the flow of resources in Australia and South america.

Zhao Yong, China’s refining capacity in 2015 reached 7.3 tons per year, or in 2020 to achieve 8 tons per year, the annual production capacity of approximately 80 million tons of excess. Under this background, China’s exports of refined oil and is expected to continue to expand.

Because a lot of bad news to investors expect stampede in the implementation of OPEC, limited production plan at the end of November is not high.

TycheCapitalAdvisors TariqZahir traders said: “the next one to two weeks, even if the final implementation of limited production plan, but for oil prices will not be too much influence. The oil price has a reversal, the future may be further down low.”

Friday (November 11th), American oil service Beck Hughes released data show that as of November 11th week, the number of U.S. crude oil drilling platform rose 2, rose to 452 U.S. exports; oil drilling, natural gas drilling and the mixed oil and gas drilling down 1 to 568 of total exports, export. From the recent changes in the number of American petroleum drilling, the drilling platform overall number in the continuous recovery, indicating that the U.S. crude oil production is likely to be active.

Well-known financial blog zero hedge US week when drilling the total said last week that the United States yield a number of months the largest increase, the number of U.S. crude oil drilling now rose to a 9 month high, but the price is not affected by this; at present oil prices mainly affected by Trump’s economic policy boosted the dollar, OPEC or unable to reach an agreement or an invalid the agreement is expected to push.

In addition, before OPEC announced the monthly report, the International Energy Agency (IEA) report shows that if OPEC is unable to take adequate action, the problem of excess supply is expected to continue until 2017. IEA said that in October the global supply of crude oil increased by 800 thousand barrels a day to 97 million 800 thousand barrels / day, due to the OPEC production of a new high, including Russia, Brazil, Canada, Kazakhstan and other non OPEC oil producers production promotion.

recently, international oil prices continue to fall on Friday, intraday plunged more than 3%, because of the organization of Petroleum Exporting Countries (OPEC) the latest monthly report confirmed that the October crude oil production hit a record high, increasing market oversupply concerns but also makes the prospect of limiting the production of clouds in the sky.

At the same time, strong U.S. pressure to oil prices. U.S. WTI crude oil futures prices hitting an intraday low of $43.09 / barrel, Brent crude oil futures prices hitting an intraday low of $44.21 / barrel.

As of the close, the United States WTI December crude oil futures fell 2.91% to $43.316 a barrel. January Brent crude oil futures fell 2.01% to $44.74 a barrel.

The OPEC report shows that in October the organization of crude oil production in September increased 240 thousand barrels a day to 33 million 640 thousand barrels / day. The oil price has all erased all the gains since the end of September reached an agreement to limit production.

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