International oil prices continue to be under pressure, and the White House is forced to a dead end, or has to fill this hole

On Thursday (November 11), international oil prices continue to be under pressure, which is expected to allow the overnight oil market to plunge by about 3%, because the market is worried that the rise in the US inflation rate, stimulated by rising energy costs, may prompt the government to release more strategies Crude oil reserves pushed oil prices down.

GMT+8 14:46, NYMEX crude oil futures fell 0.05% to US$81.30/barrel; ICE Brent crude oil futures fell 0.10% to US$82.56/barrel.


Previous reports showed that the U.S. Consumer Price Index (CPI) rose 6.2% year-on-year in October, and the inflation rate rose to a new high in more than 30 years. The dollar is higher. The oil price trend is usually opposite to that of the U.S. dollar.

Edward Moya, senior analyst at OANDA, said: “Crude oil prices are trying to gain a foothold. They fell yesterday because of the soaring U.S. inflation that increased the pressure on the Biden administration to use strategic oil reserves. But energy traders know that the release of strategic oil reserves only It will bring about a very short-term price drop and will not relieve US consumers too much pressure."

US President Biden said earlier that he has asked the White House National Economic Council (NEC) to work hard to reduce energy prices and the Federal Trade Commission (FTC) to crack down on market manipulation in the energy industry in order to reverse inflation more vigorously.

Measures to cut energy costs may include the release of more crude oil from the US Strategic Petroleum Reserve (SPR). John Kilduff, founding partner of New York hedge fund Again Capital, said: "People may think this is a signal that there will be more in the future."

Marco Dunand, Beneficiary Executive Officer of Mercuria Energy Trading, said that high oil prices may encourage the global market of the US shale oil industry to release 1 million barrels of oil per day. “I think there is a response mechanism for releasing reserves and unlocking spare capacity, if necessary. , It can actually balance the market."

The U.S. Energy Information Administration (EIA) said that as of the week of November 5, crude oil inventories increased by 1.002 million barrels, and analysts expected an increase of 1.6 million barrels. Part of the reason for the increase in crude oil inventories is that the United States released 3.1 million barrels of strategic oil reserves, the largest since July 2017.

But distillate stocks such as gasoline and diesel dropped by 1.555 million barrels and 2.613 million barrels respectively. Supply in the US oil market has tightened in recent weeks. Due to accelerating demand, holiday consumption may rise further as more international travel resumes.

Andrew Lipow, president of Lipow Oil Associates in Houston, said: "These figures are generally constructive. Not only have gasoline and diesel inventories continue to decline, but jet fuel inventories have also continued to decline."

Dunand of Mercuria also said that if OPEC+ continues to increase its current monthly output of 400,000 barrels per day, by the middle of next year, there will still be 1.5 million barrels of idle capacity worldwide. Unlocking idle capacity as soon as possible is a good way to curb soaring oil prices.