Limited risk premium, accelerated release of production capacity, increased downward pressure on international oil prices in the second half of the year.

The Organization of the Petroleum Exporting Countries (OPEC) has decided to increase production for the fourth time this year. Recently, the major oil-producing countries in OPEC and non-OPEC countries decided to increase production by an average of 548,000 barrels per day in August. On July 9th, the 9th OPEC International Seminar opened in Vienna, once again causing international market to closely monitor oil prices. Just three months ago, the US tariff policy caused international oil prices to drop below the psychological barrier of $60 per barrel overnight. Today, the "sword of Damocles" of tariff negotiations still hangs high, although tensions with Iran have temporarily eased, expectations of interest rate cuts by the Federal Reserve have reignited, and with multiple factors intertwining, downward pressure on the international oil market has increased. Looking ahead to the second half of the year, experts suggest that a supply-demand imbalance is forming, geopolitical risk premiums are gradually decreasing, and the overall center of international oil prices is expected to move lower.