International oil prices stabilized at a low level

Affected by trade friction, international oil prices fell to the lowest level since January, and then rebounded, but still at a low level.

　　London Brent crude oil prices fell for the third consecutive week, a drop of nearly 2%, while US crude oil prices rose about 1% this week.

　　In the middle of the week, the two indicators of crude oil contracts hit the lowest level since January and fell to important psychological barriers on the 5th, causing investors' worries. 

Analysts believe that the recent international trade tensions and the slowdown in manufacturing in developing countries have damped demand for crude oil, and high stocks and excessive supply has also caused oil prices to lose support. 

The prices of the two major crude oil futures fell by about 22% and 19% respectively from their respective highs in the year, which are close to the lowest level since January this year.

　　Saudi Energy Minister Falih said in the week that the Organization of PetroleumExporting Countries (OPEC) and its allies should extend the oil production reduction agreement, which stimulated oil prices to rebound.

　　Falih also said that OPEC is close to reaching an agreement on extending the production reduction agreement until June, but further consultations with non-OPEC countries participating in the production reduction agreement is still needed. 

At the end of last year, OPEC reached an agreement with non-OPEC oil producers such as Russia to reduce production by 1.2 million barrels per day from January 1 this year.

　　John Kildaf, founding partner of the US “Reinvestment” capital management company, believes that $50 a barrel is the current support for the current price of light crude oil on the New York Mercantile Exchange. 

The support level refers to an asset that may encounter a long position when the price falls, and then stop falling and stabilize. O'Grady, chief market strategist at Confluence Investment Management believes that the manufacturing index of many economies is in a contractionary range, which is not conducive to boosting demand for crude oil.