Jinwu Financial News | Petroleum stocks weakened, with CNOOC Oilfield Services (02883) down 4.34%, Kunlun Energy (00135) down 2.94%, Sinopec (00386) down 2.45%, CNPC (00857) down 2.45%, Shanghai Petrochemical (00338) down 1.75%, and CNOOC (00883) 0.94%.
After holding its 37th ministerial meeting, OPEC announced that it would extend “voluntary production reduction measures” until the end of 2024; extend “collective production reduction measures” until the end of 2025. Although production cuts have been postponed, there is no new production reduction plan previously anticipated by the market. As expectations fell short, international oil prices were negatively impacted. Furthermore, a wave of interest rate cuts in Europe and the US is imminent, which means that there is downward pressure on the European and American economies. If the inflation rate of European and American countries falls more than expected, demand for crude oil will drop significantly.
J.P. Morgan analysts believe that the recent decline in international oil prices is only temporary, and oil prices will rise again in the next few months as demand rises.