Hydraulic fracturing accounts for about half of current U.S. crude oil production

Hydraulic fracturing accounts for about half of current U.S. crude oil production

On the 4th, the OPEC monthly report announced that the implementation rate of production cuts reached 05%. Due to the over-fulfillment of OPEC's production cut targets and the impact of the UHydraulic fracturing accounts for about half of current U.S. crude oil productionnited States' oil sanctions on Venezuela and Iran, international oil prices are expected to stand at $60.

According to people familiar with the matter, the rapid increase in Russian oil production is mainly due to the huge inventory of oil tanks in western Siberia. According to data from Russia’s state-controlled pipeline monopoly, the Transneft pipeline system can store approximately 6 million tons of oil, which is equivalent to Russia’s daily crude oil production. Not only that, the storage capacity of Rosneft’s warehouse is even more alarming, about 7 million tons.

Many people think that investing is to find a product that can rise, buy it and wait. It looks correct on the surface, but in fact, investment is a series of events, which can basically be divided into three parts: pick a product that can rise, this process is called prediction; at what price to buy, and when to buy; after the first buy, it will fall. What should I do if I make a profit and sell it but not sell it? What if I do not sell it and then fall back? After selling it, it will continue to rise, but still chasing it?

Russian Energy Minister Novak said that Russia will reduce production in accordance with the production reduction agreement, and the scale of production reduction will reach 005 million tons in the first half of 209. However, Novak also stated that it has the ability to restore crude oil production in 209 to 5.6 billion tons (20,000 barrels per day), suggesting that Russia may increase production significantly in the second half of the year.

Trump is very dissatisfied with rising oil prices. Rising oil prices mean that the cost of living of the American people will increase. It also means that the Democratic Party can use this reason to blame Trump. As the midterm elections in the United States are approaching, Trump must find a way to lower oil prices in order to get more votes. However, the rise in oil prices this year made him very angry. He believed that OPEC deliberately raised oil prices. After April, almost every month he would post several tweets to criticize OPEC and ask OPEC to lower oil prices.

In addition, at 02:00 on Thursday, April 9th, the Federal Reserve will release the Beige Book of Economic Conditions. This report will systematically describe and forecast US inflation, employment, economic growth expectations, risks and otheHydraulic fracturing accounts for about half of current U.S. crude oil productionr aspects. If the tone is optimistic, it may help the dollar to rise.

On the other hand, if oil prices rise due to OPEC’s frozen production, Canadian oil sands as a non-OPEC member and relatively high-cost shale oil will surely have a large-scale impact and seize OPEC’s existing market share. , Then, at least on the bright side, crude oil production will continue to be surplus. After this gimmick, oil prices will continue to fall. Even if production is frozen rather than reduced, the current situation of crude oil will not be changed.