Industry intelligence I oil prices hit a new high in 7 years, and oil service companies are developing trends

Last night, Brent crude oil briefly broke through $88 and reached a high of $88.13 per barrel, the highest value since 2014, approaching $90 per barrel; Crude oil rose above $85 to $85.16 a barrel in New York.

Since the beginning of 2022, international oil prices have achieved a "good start", mainly affected by two major factors: supply and demand. On the demand side, although many countries in the international community have been affected by the new crown mutant strain Omicron for several days, at present, the harmfulness of the new strain is still weak and has not caused excessive disruption to the economic recovery, alleviating the market's concerns about the decline in crude oil demand. At the same time, the continuous advancement of vaccination efforts in countries around the world has also played a stabilizing role in market sentiment.

Against this backdrop, global crude oil demand is expected to continue to pick up. According to the latest forecast made by the U.S. Energy Information Administration (EIA), global oil consumption will reach 100.52 million barrels per day in 2022, up from a previous estimate of 100.46 million barrels. The boost in demand for crude oil has been accompanied by a lack of supply capacity.

On the crude oil supply side, the market doubts that the crude oil supply capacity of major oil producers may not meet the expected plan. In early January, OPEC+ decided to maintain its stated policy of increasing crude oil production by 400,000 barrels per day in February, however, the market doubted that it could achieve this goal. In recent days, the geopolitical crisis of the international community has been unfolding, the state of emergency in Kazakhstan, and the tension between Russia and Ukraine has aroused the alarm of the international community, which has affected the production of oil-producing countries. In the short term, global crude oil inventories are still low. In the longer term, according to a new report from the International Energy Forum (IEF), upstream investment in the oil and gas industry will continue to decline in 2021, and new oil and gas discoveries will hit the lowest level in 75 years for the whole year. A number of research institutions have warned that the world may enter an era of "oil and gas shortage", and the situation of short supply and demand will continue to push oil prices up in the future. With oil prices recovering sharply, bullish voices have the upper hand. Goldman Sachs raised its forecast for Brent crude oil prices, forecasting it to reach $100 in the third quarter. Goldman Sachs released a report saying that the solid fundamentals reversed the decline in oil prices last year, and the market still unexpectedly has a large supply gap because the Omicron variant is far less impactful of demand than the Delta strain.

Judging from this trend, there is still a large supply gap in the market, the demand for oil is large, the future oil price will rise, the development prospects of unconventional oil production enterprises are better, more surrounding industries will also profit, and the production of Sany Petroleum equipment will also be good.