According to Kayrros, an energy data provider, although the oil exporting countries (OPEC) cut oil production, there seems to be a problem of oversupply of crude oil around the world. The surplus is about 90 million barrels higher than the average in 2018. Global oil inventories increased by as much as 40 million barrels in May alone due to sluggish demand from refiners and end consumers and steady and strong growth in us light crude oil output. The US Energy Agency has announced that oil inventories have soared and their growth is the highest since July 2017. Higher stocks in the us not only offset the impact of OPEC production cuts and tensions in the Middle East, but also raised concerns about oversupply, and OPEC's total exports did not fall as expected.
At present, the wait-and-see sentiment in the domestic market continues to exist, and the overall turnover of base oil tends to be dull. Downstream terminals and enterprises have maintained a risk aversion mode to sell products and buy on demand. Production and stocking enthusiasm is not good. The market resource digestion rate is slow. Crude oil slump leads to the decline of finished oil. The situation of the basic oil refinery is not optimistic. It is all on demand purchase. Although the price of low crude oil fluctuated slightly in June, demand for oil market wait-and-see attitude remained strong.
Many people in the industry believe that the international oil price will probably continue the downward trend in the second half of June, because if the supply side continues to increase, the demand side will increase slowly. Crude oil surplus Oil prices will continue to fall. What is the trend of base oil in the past 19 years? We need to pay close attention to the capacity and price fluctuation of crude oil and downstream demand.