Deng Zhenghong Energy Soft Power: Oil Soft Power Begins a New Round of Value Expansion and Oil Prices Reach a Consensus Above $100 Per Barrel_Saudi Arabia_Brent Crude Oil_American Automobile Association

Original title: Deng Zhenghong Energy Soft Power: Oil Soft Power Begins a New Round of Value Expansion and Oil Prices Reached a Consensus Above US$100 Per Barrel

Deng Zhenghong’s soft power said that the long-awaited soft power value of oil has launched a new round of expansion. International oil prices have recently ushered in a new wave of strong rise. Brent crude oil and New York Stock Exchange crude oil have both exceeded 90 US dollars per barrel. A new high for the year. As a result, the market continues to be bullish, and calls for oil prices to break $100 per barrel are gradually rising. Since the end of June this year, oil prices have risen strongly, with an increase of more than 35% in less than three months. As of the close of last Friday (September 15), the price of light crude oil futures for October delivery on the New York Mercantile Exchange rose 61 cents per barrel to $90.77, an increase of 0.68%; London Brent for November delivery Crude oil futures prices rose 23 cents per barrel to $93.93, an increase of 0.25%. The rise in oil prices has been reflected in the terminal. Regular gasoline currently averages $3.866 per gallon, a seasonal record high on a rolling 12-month basis, according to AAA. Gasoline prices have risen 7.8% in just eight weeks, a rare late-summer rally.

Regarding the current rising international oil prices, some analysts believe that oil prices may hit US$100 per barrel. Christine Marek, head of global energy strategy at JPMorgan Chase, believes oil prices are rising and could trade in a range of $80 to $100 a barrel in the short term. Bank of America analysts said that oil prices may soon soar to triple digits, and if “OPEC+” continues to cut supply until the end of the year on the back of improving demand in Asia, we expect Brent crude oil prices may be at Surge to over $100 per barrel by 2024. As crude oil continues to be destocked, the overall tight supply side will remain a certain pattern in the second half of the year. The production reduction efforts of “OPEC+”, especially Saudi Arabia, have achieved results. If “OPEC+” adheres to the strategy of stabilizing the oil market, oil prices will remain strong and volatile, and more extreme upward moves are not ruled out. This will be the main tone of oil price operations in the second half of the year.

In the past two months, international oil prices have rebounded by about 30% since mid-June due to supply restrictions by “OPEC+”, especially when Saudi Arabia and Russia jointly extended production cuts. Fund managers are flipping long again. Analysts said the pricing of Saudi crude oil above benchmark international oil prices reflects the pricing power the kingdom has gained over the past year and a half, allowing it to charge record premiums for its oil, especially to U.S. and European customers seeking alternatives to Russian crude. This premium is sizable due to Saudi Arabia’s central position in the oil market. Saudi Arabia’s oil production accounts for about one-tenth of the world’s total oil production. One reason Saudi Arabia has regained pricing power is that the global oil market is particularly short of the crude Saudi Arabia produces. This is mainly the result of the deep production cuts implemented by Saudi Arabia this year. But it also reflects the fact that U.S. shale, the largest source of additional oil supply, is very different from Saudi crude. Analysts say Saudi Arabia’s pricing strategy is exacerbating global inflationary pressures and may force central banks to keep interest rates at higher levels for longer. Just as during the first oil crisis in 1973-74, when Saudi crude grades were the market’s main benchmark, central banks need to look at the cost of Arabian Light crude to gauge the outlook for inflation.

[About the author]Deng Zhenghong, the father of China’s soft power, founded Deng Zhenghong’s soft power thought, established corporate soft power theory and soft power index tools, created energy soft power and low-carbon soft power, and was the first to systematically quantify and value soft power. , has a set of independent intellectual property rights based on soft power index and soft power value assessment calculations based on enterprises, cities, and countries, and exclusively publishes companies (Top 500 Soft Power Companies in the World, Top 100 Soft Power Companies Listed in China), cities (Cities and Regions in Mainland China) Soft power ranking, China National High-tech Zone Soft Power Ranking) and country (Global Soft Power 100) three major soft power rankings, the chief planner and author of State Grid’s “Enterprise Soft Power Series (Core Value, Core Model, Core Strength)” Contributor. He accurately predicted the plunge in international oil prices in March 2020 18 months ago and participated in the National Energy Administration’s shale oil development research, which provided a useful reference for forming shale oil development ideas that are in line with my country’s characteristics. Published “Shale Strategy: The Federal Reserve in Action”, “Shale Strategy II: Unconventional Changes”, “Shale Strategy III National Petroleum (Breaking through the Dilemma of Low Oil Prices, Production Reduction Alliance in Action, Geographical Risks of Oil-Producing Countries, and Epic Crude Oil Crash)” “Soft Power: How Chinese Enterprises Can Breakthrough” “Smart Power: Smart Strategies in a Competitive Environment” “Reinventing America: The Secret Reshaping and Soft Expansion of America’s Core Interest Industries” “Internet of Great Powers: Listing and Competition” “Low Power” “Carbon Innovation: Profit Methods under the Green Trend” and “Green Company: A Guide to Low-Carbon Business Opportunities” and other works.Return to Sohu to see more

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