On September 4, the U.S. WTI crude oil futures market prices fell sharply, with the settlement price of main contracts at $39.77/barrel, down $1.60, or 3.9%. Brent crude oil futures market price fell, the main contract settlement price to 42.66 US dollars / barrel, down 1.41 US dollars, or 3.2%. Oil prices fell, with the WTI hitting its lowest level since July, mainly due to slowing economic recovery, rising expectations, weak fuel demand, and the impact of lower oil prices in Saudi Arabia. According to monitoring, in the week of September 4, oil prices fell for three consecutive days, and the WTI fell by nearly 7%.

In the week of September 4, US stocks fell sharply for two consecutive trading days on Thursday and Friday, bringing unprecedented pressure on risky assets such as crude oil, and oil prices dragged down. The underlying reason is that the market is generally pessimistic about the prospects of economic recovery under the background of the epidemic. Indicators of the U.S. economy are also sluggish. For example, the U.S. employment data, which best reflects the economic situation, shows that the U.S. Labor Department released a non farm employment report for August on Friday, which showed that 1.37 million new jobs were created in that month, and the growth of the U.S. labor market slowed down again. This is the second consecutive month that private employment growth in the United States is lower than expected, and the prospects for economic recovery are still facing a test.

From the perspective of supply and demand, the pressure of market supply and demand can not be underestimated. Although the overall performance of US commercial crude oil inventory data on Wednesday was still good, it still failed to resist the pace of oil price downward. U.S. crude oil inventories, gasoline and distillate stocks fell last week, with U.S. crude oil inventories falling by 9.4 million barrels to 498.4 million barrels, according to the EIA report, with analysts predicting a decrease of 1.9 million barrels. This is mainly due to market concerns about future supply risks. At present, OPEC + oil producing countries have ended the record production reduction, and the scale of production reduction may be reduced in the later stage. Some market news also supports this point: earlier, the Iraqi side said that it needed to delay two months to reach the designated production reduction target, and the investigation results of some institutions showed that OPEC’s oil production in August increased by 950000 barrels / day to 2427 million barrels / day compared with the previous month, which was more than the results published by OPEC 400000 barrels / day.

According to the business agency, the recent oil price may still be disturbed by bad news from the market, and it is difficult to make a big breakthrough. On Saturday’s news, Saudi Arabia generally lowered the oil price, and the reduction rate generally exceeded the market expectation, indicating that the crude oil demand is still not optimistic. The superimposed epidemic situation is not expected to improve, and the downward risk of the US stock market is surging. All kinds of signs show that the oil price will still be under pressure in the short and medium term.