Middle East tensions escalate, crude oil sector hits upper limit in early trading

According to Jinse Finance, in the early trading session, the main contracts of SC crude oil, fuel oil, and low sulfur fuel oil (LU) all hit their daily limit up at the open. A research report from Guosen Futures pointed out that on February 28, after the United States and Israel attacked Iran, Iran announced the closure of the Strait of Hormuz shipping channel. Multiple oil tanker owners and traders suspended the transportation of crude oil, fuel, and liquefied natural gas through the strait. EIA data shows that in December, U.S. oil production fell to 13.66 million barrels per day. The decline in U.S. monthly oil production has boosted market sentiment, but future production may still increase. There are significant differences in negotiations between the U.S. and Iran, and Iran is not expected to compromise. The conflict may last for a long time, and oil prices may continue to rise in March.