The reversal of international oil price needs to be reconfirmed

On the supply side, OPEC + will jointly reduce production by 9.7 million barrels / day from May 1, according to the previous production reduction agreement reached between OPEC and non OPEC oil producing countries. At present, based on the agreement constraints and the demand of passive production reduction, the supply will tend to be marginal. Novel coronavirus pneumonia is increasing oil reserves. Although the new crown pneumonia epidemic is still not turning point, the global industry recovery and economic reactivation demand is gradually becoming reality. The economic restart of the US and India countries is expected to lead to a rebound in oil demand.

However, the reversal of international oil price still needs further confirmation. In the context of no inflection point of the epidemic, it is possible to return to work in a larger scale. If there is a second pandemic, forcing countries to take blockade measures again, it will bring unimaginable harm to the international crude oil market.