The hottest July oil price drop is Mexico's annual

2022-09-23
  • Detail

The sharp fall in oil prices in July is Mexico's annual impact on the low oil prices. Recently, the crude oil market surged and plummeted. First, it entered a technical bear market in early August, and then turned into a bull market in the next few weeks, with sharp fluctuations. According to Bloomberg, this is related to Mexico's annual hedging operation. In previous years, Mexico bought put options equivalent to 200million barrels of crude oil and sold them the following year

Mexican finance minister Luis videogaray said that Mexico hedged the crude oil market in mid June. Bloomberg later confirmed the news

in June and July this year, the crude oil delivered in December 2017 fell sharply, which is related to Mexico's annual hedging operation. Similar operations have been carried out in Mexico in the past, causing sharp fluctuations in the crude oil market. For example, in previous years, Mexico bought put options equivalent to 200million barrels of crude oil from banks. Usually, Mexico sold the insulation effect at a great discount in the next year to deduct relevant positions

the crude oil market fluctuated violently this year:

at the beginning of August, the oil price fell 22% from the recent peak on June 8, indicating that the oil market fell into a technical bear market. The 50 day moving average, 100 day moving average and 200 day moving average fell for the first time since February this year. The market is worried that the oversupply situation in the global oil market will hit again, pushing down oil prices

since then, oil prices have continued to rebound. In just a few weeks, crude oil has rebounded by 22% from the low point in early August, indicating that it has entered a technical bull market. CNBC said that the recent rise was related to short covering. In addition, OPEC will hold a meeting in September, which will also promote the recovery of the crude oil market

Copyright © 2011 JIN SHI