Oil prices fall, focus on OPEC + response to US-led oil release Reuters

© Reuters. File photo: November 22, 2019, a sticker on the side of a storage tank in the Permian Basin in Menton, Lowen County, Texas, USA, says crude oil. The picture was taken on November 22, 2019. REUTERS/Angus Mordant

Ahmed Gadar

LONDON (Reuters)-Oil prices fell slightly on Thursday. Investors are concerned about how major oil-producing countries respond to the emergency US-led oil release aimed at cooling the market, and OPEC now expects the release to increase inventories.

At 1413 GMT, the futures price fell by 14 cents, or 0.2%, to US$82.11 per barrel. US West Texas Intermediate (WTI) crude oil futures fell 30 cents, or 0.4%, to $78.09 per barrel.

An OPEC source said that OPEC expects the release of the United States to increase the oil market’s surplus by 1.1 million barrels per day (bpd).

The Organization of Petroleum Exporting Countries, Russia and its allies are collectively referred to as OPEC+, and will hold a meeting from December 1 to 2 to formulate policies.

“The bold move by oil-importing countries opens the door for OPEC+ to lower its supply policy at its next (meeting) on ​​December 2, 2021,” said Rystad Energy analyst Louise Dickson.

Since August, OPEC+ has increased its supply of 400,000 barrels per day, ending the record production cut that was set last year due to the pandemic to curb demand.

Three sources told Reuters that although the United States, Japan, India and other countries decided to release emergency oil stocks, OPEC+ did not discuss a suspension of production increases.

The United Arab Emirates and Kuwait, member states of OPEC, stated that they are fully committed to the OPEC+ agreement and did not make a statement before the meeting next week.

Iraq is also a member of OPEC. It expressed its support for the continuation of OPEC + the existing plan to increase production by 400,000 barrels per day per month, saying that due to the turmoil in the global market, the prospects for the oil market are uncertain.

High oil prices have exacerbated inflation concerns. Goldman Sachs (NYSE:) analysts said that the coordinated release may increase the market’s crude oil supply by about 70-80 million barrels.

The US Department of Energy has initiated an auction to sell 32 million barrels of Strategic Petroleum Reserve (SPR), which will be delivered between late December and April 2022. It plans to release another 18 million barrels soon.

Traders are also concerned about whether China will implement plans to release oil from its reserves.

Data released by the US Energy Information Administration on Wednesday showed that gasoline and distillate inventories fell more than expected, while crude oil inventories rose. [EIA/S]

(Additional reporting by Sonali Paul in Melbourne and Florence Tan in Singapore; editing by Kirsten Donovan and Bernadette Baum)

Disclaimer: Converged Media I would like to remind you that the data contained in this website may not be real-time or accurate. All CFDs (stocks, indices, futures) and foreign exchange prices are not provided by exchanges, but by market makers, so prices may be inaccurate and may be different from actual market prices, which means that prices are indicative and not Suitable for trading purposes. Therefore, Fusion Media is not responsible for any transaction losses that you may suffer as a result of using this data.

Converged Media Fusion Media or anyone related to Fusion Media will not be liable for any loss or damage caused by relying on the data, quotations, charts, and buy/sell signals contained in this website. Please fully understand the risks and costs associated with financial market transactions. This is one of the most risky forms of investment.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *