The US starts to deal with the oil market, will oil prices fall?

At present, the biggest challenge to the global economy is not the epidemic, but inflation, and the US economy in particular is suffering from the pain caused by inflation. According to the latest data: US inflation has hit a 31-year high. Inflation is an increase in market prices, so the question is, why does inflation occur in the United States and even the world? How does the US economy solve the problem of inflation?

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The U.S. has finally taken action on oil. Will oil prices fall? Who will take advantage of the fisherman

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The U.S. finally got its hands on oil

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At present, the inflation in the U.S. economic market is very high. The objective reasons for the inflation are that the cost of the logistics chain has soared; From the current point of view, the United States is implementing control over the logistics chain transportation, and has begun to shrink its balance sheet, so the routine event of oil prices, which is huge and has historical conventions, is indeed a bit of a market attention.

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First popularize two things. The first thing is to intervene in oil prices. Historically, the US president will intervene in oil prices. The most recent one was when oil prices reached $85. Trump directly intervened, using some unconventional means to make Saudi Arabia and other oil-producing countries have softened, and Saudi Arabia and other countries have curbed oil prices by increasing oil production.

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The second thing is the ranking of oil-producing countries. The United States is the largest oil-producing country in the world, and currently produces more than 10 million barrels of crude oil per day. The second is Russia, which also produces more than 10 million barrels of crude oil per day. OPEC is a powerful organization of oil-producing countries.

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The U.S. Has finally taken action on oil. Will oil prices fall? Who will take advantage of the fisherman?

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This time, the force of the US President's intervention was relatively mild, and he asked OPEC to increase oil production, but OPEC did not take this request to heart. After that, the United States put the means on Russia, with the purpose of "stabilizing the global energy market", and wants Russia to increase its crude oil production capacity. At present, there is little hope.

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After taking a turn, I found that the US's influence is not as great as it used to be, and it can't even speak to the OPEC organization, so I can only use the means of intervening in oil prices on myself, after all, I am the world's largest oil producer. Well, next, the United States is considering using the United States' strategic oil reserves to reduce oil prices. To put it bluntly, it is to put the oil reserves in the market and intervene in oil prices by increasing the market supply and production. This method is feasible, it depends on when the action is taken. The short-term oil price has the power to fall, and the medium-term oil price depends on the production supply of OPEC, and it is unlikely to rise sharply.

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The U.S. has finally taken action on oil. Will oil prices fall? Who will take advantage of the fisherman

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The fluctuation of international oil prices is a competition between various forces. In the past, when the old and the United States were easy to talk about, they meant to intervene. Now they have to consider their own interests and have to "discuss" with other major oil-producing countries. It's a bit of a powerhouse. For us, of course, we do not want oil prices to continue to rise. The rise in oil prices directly increases our transportation costs. Whether it is self-driving or transportation, it obviously increases our expenses passively. But whether the international oil price will rise or not makes us a little helpless, it is estimated that the possibility of continuing to rise is very small.

In general, as inflation in the U.S. economic market continues to hit new highs, U.S. policymakers are becoming more and more unable to sit still and continue to intervene to curb the rise in oil prices. Now it is only a light intervention. If the U.S. inflation rate rises again , then it is likely to take more powerful measures to intervene in oil prices. A drop in oil prices is of course good for us. In addition to being bad for oil-producing countries, it is good for many economies.