Oil Down, But Remains Above $70 Mark as Tight Market Hopes Prevail

© Reuters.

By David Ho

Investing.com – Oil prices were mixed on Thursday morning in Asia as investors watch how major producers will react to emergency crude releases by major consumer nations to cool the market.

inched up 0.07% to $82.31 by 11:31 PM ET (4:31 AM GMT) while inched down 0.06% to $78.34.

“The coordinated SPR (Strategic Petroleum Reserve) release may end up as a near-term political win for the parties involved, however, we do not expect it to have a lasting impact on crude fundamentals,” said Fitch analyst Jake Leiby in a note.

“But the bigger picture is that product demand remains healthy, adding pressure to a tightening market,” stated Capital Economics economist Kieran Tompkins (NYSE:) in a note.

All eyes are now on the Organization of the Petroleum Exporting Countries and allies, or OPEC+, as it meets next week to discuss oil demand and supply.

“The bold move from the oil importers has opened the door wide open for OPEC+ to adjust its supply policy downwards at its next meeting on 2 December 2021,” Rystad Energy analyst Louise Dickson told Reuters.

OPEC+ has been adding 400,000 barrels per day of supply each month, undoing the major output reductions from last year when the COVID-19 pandemic slowed demand.

Three sources told Reuters that the cartel is not discussing pausing its oil output increases, despite the coordinated release.

Investors are also watching out if China will release oil from its reserves as planned.

Meanwhile, showed a build of 1.017 million barrels for the week ended November 19. Forecasts prepared by investing.com predicted a draw of 481,000 barrels, while a draw of 2.101 million barrels was reported during the previous week.

from the day before showed a build of 2.307 million barrels.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

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