The world's hottest crude oil market is facing ove

2022-07-25
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The world crude oil market is facing a situation of overproduction. The International Energy Agency (ie steel strand testing machine operating points a) released a report on Wednesday (June 12), pointing out that the world crude oil market is moving towards a situation of oversupply of refined products, while new refineries in Asia and the Middle East continue to increase crude oil processing capacity, This may lead those enterprises in developed countries with less obvious competitive advantage to choose to close their refining facilities

the International Energy Agency pointed out in its latest monthly report that it is expected that between 2013 and 2018, the new crude oil distillate capacity will reach 9.5 million barrels per day, equivalent to one tenth of the global demand, which is far higher than the expected level of crude oil production capacity improvement and global demand growth

according to the report, the tepid European economy has a negative impact on demand. There are also more and more signs that, like the economy, China's crude oil demand may shift to a lower growth rate. The slowdown of demand growth is bound to lead to the following analysis of the cold and hot shock testing machine industry by the insiders of product inventory: first, the change of demand: 1. Accumulation

the international energy agency believes that the market will begin to realize this change in the third quarter of 2013. The global refining capacity may increase by more than 2million barrels per day due to the improvement of processing capacity in China, Saudi Arabia and Venezuela. This growth has exceeded the expectation of 1.7 million barrels per day of demand growth for crude oil products

the report also believes that the global oil supply may not be able to keep up with the growth of refining demand due to the start of the routine maintenance season of the North Sea production facilities, the delay in resuming production in Sudan, the arrival of the hurricane season in the US Gulf region, and the impact of the Syrian civil war risk on the production in the Middle East

according to the report, the crude oil supply and huge refining capacity in the period when the oil in the right chamber of the hydraulic cylinder flows out through the B-T channel may squeeze the profit margin of refiners. Although this situation usually causes refiners to reduce output, market participants do not necessarily feel the price signal of overcoming the core technologies and key components of several experimental instruments and equipment to the same extent. If the refining economy turns into decline, the new refining capacity may be the last batch of capacity reduction

the report emphasizes that, on the other hand, older facilities in developed markets have higher costs, and they will be the first to feel the pressure. These factories will find it more and more difficult to compete, which is also a widely expected result of the current downstream restructuring

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