English
Market News International oil prices are weakening, Biden releases reserves to be constrained, and some institutions issue pessimistic forecasts
International oil prices are weakening, Biden releases reserves to be constrained, and some institutions issue pessimistic forecasts
On November 17, international oil prices fell, as US gasoline inventories fell more than expected last week, which may increase the pressure of the Biden administration to release oil from emergency reserves to curb soaring gasoline prices. The forecasts of many industry organizations suggest that there may be oversupply next year.
2021-11-17
10062
On Wednesday (November 17), international oil prices fell, as US gasoline inventories fell more than expected last week, which may increase the pressure of the Biden administration to release oil from emergency reserves to curb soaring gasoline prices. The forecasts of many industry organizations suggest that there may be oversupply next year.
GMT+8 16:17, NYMEX crude oil futures fell 0.42% to US$80.42/barrel; ICE Brent crude oil futures fell 0.39% to US$82.10/barrel.
In order to reduce gasoline prices, US President Biden has been considering releasing oil from the Strategic Petroleum Reserve (SPR). Gasoline prices at California gas stations hit a record high this week, however, members of Congress have mixed views on whether this is necessary.
U.S. House Majority Leader Hoyer said late on Tuesday (November 16) that he disagreed with Senate Majority Leader Schumer’s call on Sunday to use the Strategic Petroleum Reserve (SPR) to reduce oil prices, saying that the reserve was meant to reduce oil prices. Fill the gap in crude oil supply in emergency situations.
According to data released by the American Petroleum Institute (API) on Tuesday, gasoline inventories fell by 2.792 million barrels in the week ending November 12, which was much higher than the expected 731,000 barrels. Although crude oil inventories increased by 655,000 barrels, the increase was less than the expected 1.55 million barrels. The official U.S. Energy Information Administration (EIA) weekly inventory report will be announced on Wednesday at 23:30 GMT+8.
Leona Liu, an analyst at DailyFX in Singapore, said: "With the advent of the holiday season, the increase in travel demand may be the reason behind the decline in US gasoline inventories. (Now) this may put more pressure on President Biden to demand release. The U.S. Strategic Petroleum Reserve, which may put oil prices at risk. In the short term, the upcoming U.S. Energy Information Administration (EIA) inventory report may become a catalyst for the next move."
The market generally believes that even if the United States does not hesitate to use strategic oil reserves, the benefits to American consumers will be small. The release of reserves can only serve as a temporary relief, and it requires US shale oil producers or the Organization of the Petroleum Exporting Countries (OPEC) to increase supplies in order to truly and effectively solve the problem.
However, OPEC Secretary-General Barkindu said on Tuesday that OPEC expects that the oil supply will show signs of surplus from next month, so its member countries and partner countries (OPEC+) must "very much" when reviewing production policies at their monthly regular meetings. , Very cautious". But he declined to say whether he thinks OPEC+ will stick to the current policy of 400,000 barrels per day in monthly production when it meets on December 2.
The International Energy Agency (IEA) on Tuesday raised its forecast for the average Brent crude oil price in 2022 to $79.40 per barrel, but it is expected that the gains may slow down as oil prices hit multi-year highs last month and pushed up global production. Preliminary data for October showed that oil inventories in OECD countries rebounded slightly.
The IEA stated: “As more and more countries reopen their borders, global oil demand is increasing due to strong gasoline consumption and increased international travel.” But it also stated that the European coronavirus cases have increased, industrial activity has weakened, and oil prices have risen. May weaken demand.
Barkin all pointed out: “Not only from OPEC, but also from the IEA and other institutions’ forecasts indicate that according to the OECD inventory measurement standards, there will be an oversupply situation in the market next year. This further proves why each of us Decisions made by the month should be very cautious and cautious."
Barkindu also emphasized that OPEC has a vested interest in ensuring the continued recovery of the global economy. "We believe that we are on the path of recovery. For OPEC, we will continue to take all necessary measures so that the recovery will not be affected. ."
GMT+8 16:17, NYMEX crude oil futures fell 0.42% to US$80.42/barrel; ICE Brent crude oil futures fell 0.39% to US$82.10/barrel.
In order to reduce gasoline prices, US President Biden has been considering releasing oil from the Strategic Petroleum Reserve (SPR). Gasoline prices at California gas stations hit a record high this week, however, members of Congress have mixed views on whether this is necessary.
U.S. House Majority Leader Hoyer said late on Tuesday (November 16) that he disagreed with Senate Majority Leader Schumer’s call on Sunday to use the Strategic Petroleum Reserve (SPR) to reduce oil prices, saying that the reserve was meant to reduce oil prices. Fill the gap in crude oil supply in emergency situations.
According to data released by the American Petroleum Institute (API) on Tuesday, gasoline inventories fell by 2.792 million barrels in the week ending November 12, which was much higher than the expected 731,000 barrels. Although crude oil inventories increased by 655,000 barrels, the increase was less than the expected 1.55 million barrels. The official U.S. Energy Information Administration (EIA) weekly inventory report will be announced on Wednesday at 23:30 GMT+8.
Leona Liu, an analyst at DailyFX in Singapore, said: "With the advent of the holiday season, the increase in travel demand may be the reason behind the decline in US gasoline inventories. (Now) this may put more pressure on President Biden to demand release. The U.S. Strategic Petroleum Reserve, which may put oil prices at risk. In the short term, the upcoming U.S. Energy Information Administration (EIA) inventory report may become a catalyst for the next move."
The market generally believes that even if the United States does not hesitate to use strategic oil reserves, the benefits to American consumers will be small. The release of reserves can only serve as a temporary relief, and it requires US shale oil producers or the Organization of the Petroleum Exporting Countries (OPEC) to increase supplies in order to truly and effectively solve the problem.
However, OPEC Secretary-General Barkindu said on Tuesday that OPEC expects that the oil supply will show signs of surplus from next month, so its member countries and partner countries (OPEC+) must "very much" when reviewing production policies at their monthly regular meetings. , Very cautious". But he declined to say whether he thinks OPEC+ will stick to the current policy of 400,000 barrels per day in monthly production when it meets on December 2.
The International Energy Agency (IEA) on Tuesday raised its forecast for the average Brent crude oil price in 2022 to $79.40 per barrel, but it is expected that the gains may slow down as oil prices hit multi-year highs last month and pushed up global production. Preliminary data for October showed that oil inventories in OECD countries rebounded slightly.
The IEA stated: “As more and more countries reopen their borders, global oil demand is increasing due to strong gasoline consumption and increased international travel.” But it also stated that the European coronavirus cases have increased, industrial activity has weakened, and oil prices have risen. May weaken demand.
Barkin all pointed out: “Not only from OPEC, but also from the IEA and other institutions’ forecasts indicate that according to the OECD inventory measurement standards, there will be an oversupply situation in the market next year. This further proves why each of us Decisions made by the month should be very cautious and cautious."
Barkindu also emphasized that OPEC has a vested interest in ensuring the continued recovery of the global economy. "We believe that we are on the path of recovery. For OPEC, we will continue to take all necessary measures so that the recovery will not be affected. ."
Bonus rebate to help investors grow in the trading world!
Or try Free Demo Trading
