On Wednesday, international crude oil plummeted, with the settlement price of the main WTI crude oil futures contract in the United States at $69.38 per barrel, a decrease of $2.94 or 4.1%. The settlement price of Brent crude oil futures main contract was $74.30 per barrel, a decrease of $2.90 r 3.8%. On December 7th, domestic crude oil fell significantly, with the settlement price of SC crude oil main contract at 539.2 RMB/ton, a decrease of 2.86%. On a macro level, global economic data remains weak, and the market generally expects to maintain the current interest rate policy unchanged, with the possibility of interest rate cuts starting in March next year. On the supply and demand side, the increase in finished oil inventories in the United States last week exceeded expectations, especially the surge in gasoline inventories, which exacerbated the bearish sentiment in the market towards fuel demand. In addition, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) have not tightened their production cuts as expected by the market. The expectation of loose supply has put pressure on oil prices.

In the short term, oil prices may still face downward pressure. In the medium term, OPEC+ will continue to play its role in stabilizing oil prices and regulating the market. There is also data indicating a decrease in OPEC+ production in November, marking the first monthly decline recorded since July. In the medium term, it is not ruled out that OPEC+will continue to deepen its production reduction policy. The future supply-demand game will continue. The probability of wide fluctuations in oil prices has increased.

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