Oil-producing countries struggle to reach consensus on increasing production, rising oil prices drag down some industries

　　The UAE said it was not the only country seeking to raise its benchmark output
.
Others, including Azerbaijan, Kazakhstan, Kuwait and Nigeria, have made demands and been given new benchmarks since the agreement was first reached last year
.

　　Some sources said the outlook for an increase in production is now unpredictable and that there will be no increase in oil production in August
.
While other analysts said a new meeting will be held in the next few days, they see an increase in production in August
.

　　"There is no decision on August yet, discussions are continuing
.
The market needs that oil ," said a source familiar with the talks
.

　　Institutions are bullish on crude oil prices

　　Although oil prices have continued to rise, due to factors such as increased demand, many institutions are still bullish on oil prices, even saying that oil prices will rise to the level of 100 yuan in the next year
.

　　Brent is up more than 40% so far this year, while prices in New York are up more than 50%
.
Crude prices for both varieties have risen more than 80% over the past 12 months
.

　　Oil trader Trafigura Group CEO Will, said recently that oil prices could top $100 a barrel before demand peaks
.

　　Relevant market participants said that the oil market situation may help oil prices to test the triple-digit region "in the next year or so"
.

　　Over the past seven years, the oil industry has suffered from underinvestment and a decline in reserves and spare capacity
.
Global oil demand is expected to continue to increase despite market concerns over the spread of the delta strain of the coronavirus
.

　　The International Energy Agency (IEA) forecast in June that global demand in 2021 will increase by 6% from the previous year to 96.
4 million barrels per day, before returning to pre-pandemic levels by the end of 2022
.

　　In order to curb higher oil prices, foreign media reported that Saudi Arabia and Russia, which dominate OPEC and its partners, have reached an agreement to increase production by 400,000 barrels per day from August to December
.

　　At the same time, constraints faced by the U.
S.
shale industry have given OPEC and its partners significant leverage over oil prices
.
The U.
S.
shale industry has not increased production in response to rising prices as it has in the past
.

　　The dollar factor is also likely to further increase the cost of oil
.
Consensus expectations for a weaker dollar took a hit after the Federal Reserve signaled that policymakers expect to raise interest rates sooner than investors expected
.
Some analysts believe this could be seen as a bearish commodity factor
.
A stronger dollar makes dollar-denominated commodities more expensive for non-dollar users
.

　　Goldman Sachs' latest report predicts that Brent oil prices will top $80 a barrel in the third quarter, and that a recovery in demand could push prices "well above" that level
.

　　The JPMorgan report also said that crude oil prices are "destined" to rise above $80 a barrel in the fourth quarter of this year
.

　　Bank of America said Brent was on track to hit $100 a barrel next summer, returning to triple digits for the first time since 2014
.

　　The Morgan Stanley report also forecasts Brent crude prices to be at $75-$80 a barrel by mid-2022
.

　　Options on the New York Mercantile Exchange betting on oil prices reaching $100 a barrel have become the most-held bullish contracts since last month, and holders of those options are adding leverage to bet that prices will continue their previous gains.
Rally
.
Analysts, however, believe that oil prices are unlikely to rise to $100 a barrel anytime soon, as the global economy is still struggling to recover from the shock of the pandemic and major oil producers are ramping up output to meet resurgent demand
.

　　Some industries are affected

　　International oil prices remain high, and many areas have been affected.
The pressure of rising production and living costs and the risk of economic recovery being dragged down are increasing
.

　　The U.
S.
government said a few days ago that it is concerned about the impact of high oil prices on U.
S.
consumers, but believes that there is enough spare oil production capacity in the world
.

　　"Currently we believe that there is sufficient spare oil production capacity globally," White House spokesman Psaki told the media.
"As the global economy recovers and consumer activity returns to normal, oil market conditions will be somewhat affected
.
"

　　The continued surge in international oil prices will increase shipping costs and put pressure on the recovery of global trade
.
It is reported that fuel costs generally account for more than 30% of the operating costs of container shipping companies
.

　　High oil prices have a more direct impact on companies at the extended end of the oil industry chain, and relevant producers are under pressure from high costs
.

　　For plastic products manufacturers, high oil prices have increased their production costs, but at this time, the increase in petrochemical production is difficult to pass on to consumers, which will lead to lower profit margins
.

　　Asian plastics makers may add factories to meet demand for everything from face masks to auto parts in order to meet rising market demand, but those strategies have yet to translate into profits as the cost of crude oil and other raw materials rises, Bloomberg reported.
, and when petrochemical production increases, it is difficult to pass on costs
.

　　The petrochemicals that make plastics come from processing naphtha and liquefied petroleum gas, or propane and butane
.
Plastic factories must source raw materials from the open market
.
For manufacturers that rely on liquefied petroleum gas, soaring U.
S.
propane prices have pushed up costs, traders said
.
The price of the benchmark Far East propane swap contract topped $660 a tonne last Wednesday, the highest since October 2018
.
Propane prices have risen by a third since mid-April
.

　　"The market will be tested in the near term, especially in the third quarter," said Al Rafa, an analyst at Fairfax Global Energy Consulting, and factories that do not have complete refining systems or access to cheap feedstocks may be forced to cut output
.