OPEC + extended production reduction agreement is expected to increase. This week, the international crude oil price continued to rise, driving the downstream gasoline and diesel prices to rise steadily. This week’s domestic gasoline price was 5025 yuan / ton, 2.71% higher than last week’s. The domestic diesel price is 4967 yuan / ton, 0.70% higher than that of last week.

OPEC + will hold a production reduction consultation meeting on June 6. The market released favorable expectations of crude oil producers to extend the production reduction agreement, and oil prices rose continuously. It is widely believed that OPEC + is considering extending the implementation period of its 9.7 million B / D production reduction agreement to July or August at this week’s meeting. According to the previous agreement, the scale of production reduction from July to the end of this year will be reduced to 7.7 million barrels / day. Saudi Arabia and Russia have preliminarily reached an agreement to continue to reduce production. With the rising crude oil price, the supporting effect on the refined oil market is more obvious. In the situation of bullish crude oil, the willingness to purchase and store refined oil in the middle and lower reaches increases, further boosting the market price of refined oil.

In recent years, the domestic weather has turned hot, the gasoline consumption is strong, and the downstream replenishment demand is relatively positive; the overall performance of the diesel market is average, the high temperature weather limits the diesel market demand, but the rigid demand industry still has strong support for the market.

At present, the profit margin of refinery oil products is quite considerable. After the middle of April, the operation rate of atmospheric and vacuum distillation reached a high level of 70%, and in the near future, the operation rate of atmospheric and vacuum distillation reached 75%. The supply and demand of refined oil market rose again.

Lu Xingjun, an oil product analyst with business news agency, believes that although Russia and Saudi Arabia have reached an agreement to extend the production reduction for one month, the situation of production reduction in Iraq and Nigeria is not good, and market concerns are growing. Whether the crude oil price can break through the “floor price” of domestic oil products of $40 / barrel remains variable. It is expected that the domestic oil product market will remain stable next week.