UBS: VENEZUELAN OIL AGREEMENTS WILL NOT AFFECT OIL PRICES IN THE SHORT TERM, AND HORMUZ REMAINS CRITICAL

ACCORDING TO UBS ANALYSTS, THE VENEZUELAN OIL AGREEMENT WILL NOT HAVE A SIGNIFICANT IMPACT ON OIL PRICES IN THE SHORT TERM AND THE STRAIT OF HORMUZ REMAINS A KEY FACTOR AFFECTING OIL PRICES. DESPITE THE CONCERNS RAISED BY THE VENEZUELAN AGREEMENT, THE COUNTRY ' S OIL PRODUCTION HAS INCREASED ONLY BY 100,000 TO 200,000 BARRELS PER DAY THIS YEAR AND FACES MULTIPLE CHALLENGES, INCLUDING UNDERINVESTMENT AND THE AGEING OF INFRASTRUCTURE. UBS EXPECTS THAT IN THE COMING MONTHS, OIL PRICES WILL BE MAINLY AFFECTED BY THE SITUATION IN THE STRAIT OF HORMUZ AND CHANGES IN GLOBAL ENERGY DEMAND。