Midnight Oil Price Drop! Below $70 per Barrel Internationally

Tonight at midnight, we might witness the largest drop in fuel prices this year.

Those who haven't refueled yet, hold on for a few more hours and refuel after midnight!

International oil prices have been quite low in recent months, staying below $70 a barrel for a long time.

So, this time around, the drop in refined oil could be close to 400 yuan per ton, which translates to a reduction of two or three jiao per liter.

Refilling your tank could save you over ten yuan, or even tens of yuan.

So, what will be the future trend of international oil prices?

To be honest, international oil prices could have continued to drop because the global economy is indeed not doing well, significantly reducing the demand for oil.

However, didn't the Federal Reserve just cut interest rates yesterday?

They dropped by 50 basis points.

Trump even said that this Biden administration must have seen the mess that the U.S. economy is in; if they don't lower interest rates to stimulate the economy quickly, the U.S. is facing bankruptcy.

The situation is indeed like this: over the past two years, the Federal Reserve has raised interest rates in more than a dozen rounds, pushing the benchmark rate from 0 to over 5.5%.

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This has made the U.S. dollar extremely strong, and consequently, oil prices have been low.

But this has also caused significant damage to the economy.

After the Federal Reserve cut interest rates, the dollar weakened, and oil priced in dollars became stronger.

So we saw that yesterday, international oil prices have already exceeded $70 a barrel.

Therefore, our price reduction this time is not as much as anticipated.

So for the U.S., does it want oil prices to rise or fall?

It's indeed a double-edged sword.

On one hand, the U.S. is very clear that when global oil prices keep rising, it's obviously beneficial to Russia.

Why have we often said in the past two years that Russia gets richer the more it fights?

The key is that they have oil, a hard currency.

It's useless for the U.S. and the West to block them; India wants to buy, and China wants to buy too.

Russia's oil and gas are not worried about selling.

Especially when the Russia-Ukraine war just started over two years ago, international oil prices even soared to as high as $130 per barrel.

Naturally, for Russia, it's a windfall; they have enough money to fight.

So, from this perspective, the U.S. should want global oil prices to decrease, in order to economically block Russia.

Moreover, the U.S. is also a major oil-consuming country; with 300 million people and 300 million cars, it's a nation on wheels.

So when oil prices drop, it's beneficial to curb U.S. inflation.

Especially since this year is also a U.S. election year, no president wants to see prices skyrocket during their term, causing the public to be unwilling to vote for them.

Therefore, both domestically and internationally, the U.S. should want oil prices to decrease.

But on the other hand, we also know that after the success of the shale oil revolution, the U.S. has actually become an oil-exporting country.

The U.S. produces more oil annually than Saudi Arabia or Russia.

So, the U.S. is also hoping that oil prices won't be too low, so they can make money.

Including Trump repeatedly stated that if he were president, he would vigorously develop America's petrochemical industry and sell all the oil and gas beneath the U.S. soil.

So for the U.S., it's really a double-edged sword whether oil prices should rise or fall.