English
Market News International oil prices continue to rebound, OPEC is unable to increase production, and there are signs of strength on the demand side
International oil prices continue to rebound, OPEC is unable to increase production, and there are signs of strength on the demand side
On November 2, international oil prices continued their upward trend, because the OPEC’s production growth rate last month was lower than expected, and the involuntary shutdown of some smaller oil-producing countries offset the impact of increased supplies from countries such as Iraq. China, the world's second largest oil consumer, has increased its processing capacity to meet the surge in diesel demand.
2021-11-02
11602
On Tuesday (November 2), international oil prices continued their upward trend because the Organization of the Petroleum Exporting Countries (OPEC) increased production at a slower-than-expected rate last month, and China, the world’s second largest oil consumer, increased its processing capacity to meet the surge in diesel need.
GMT+8 14:58, NYMEX crude oil futures rose 0.31% to 84.31 US dollars / barrel; ICE Brent crude oil futures rose 0.49% to 85.12 US dollars / barrel.
Edward Moya, senior analyst at OANDA, said: "Crude oil prices still seem to rise. The U.S. Energy Information Administration (EIA) crude oil inventory shows that the demand for most products is developing in a positive direction, while U.S. production is stable and OPEC+ insists on gradual development. After the plan to increase 400,000 barrels per day, some traders are waiting for confirmation."
Oil rebounded to a multi-year high last week, aided by the rebound in demand after the epidemic, and the Organization of the Petroleum Exporting Countries and Russia-led allies (OPEC+) insisted on gradually increasing production by 400,000 barrels per day per month, despite major consumer countries’ calls for increased oil Yield.
The Iraqi Ministry of Petroleum said in a statement on Monday that Iraq’s oil exports in October increased from 3.081 million barrels per day in the previous month to 3.12 million barrels per day. Oil revenues increased to 7.68 billion U.S. dollars in October, with an average price of 79.376 U.S. dollars per barrel.
However, a survey published on Monday (November 1) showed that OPEC member countries produced 27.5 million barrels per day in October, an increase of 190,000 barrels per day from the previous month, but lower than the OPEC+ supply agreement plan of 244,000 barrels. The increase per day, the involuntary shutdown of some smaller oil-producing countries offset the impact of increased supply from countries such as Iraq.
The largest decline in production was in Nigeria, which decreased by 70,000 barrels per day. The country’s production was disrupted again after recovering in September.
Rystad Energy analyst Louise Dickson said: "OPEC+'s production adjustment pace may lag behind the development of demand, rather than risk taking action in advance, and ultimately suffer again."
The State Administration of Grain and Material Reserves of China stated last Sunday (October 31) that it has recently carried out annual national reserve product oil rotation work. The gasoline and diesel out of the warehouse in this rotation will be used to increase market resources and ease supply tensions.
A preliminary survey conducted on Monday showed that US crude oil inventories were expected to rise last week, while gasoline and distillate inventories may decline. The investigation was conducted before the American Petroleum Institute (API) released its inventory report on Tuesday and the U.S. Energy Information Administration (EIA) released its report on Wednesday.
The Biden administration on Tuesday will announce a plan to reduce methane emissions of the national greenhouse gas, starting with oil and gas wells, pipelines and other infrastructure as part of its broader strategy to combat climate change.
GMT+8 14:58, NYMEX crude oil futures rose 0.31% to 84.31 US dollars / barrel; ICE Brent crude oil futures rose 0.49% to 85.12 US dollars / barrel.
Edward Moya, senior analyst at OANDA, said: "Crude oil prices still seem to rise. The U.S. Energy Information Administration (EIA) crude oil inventory shows that the demand for most products is developing in a positive direction, while U.S. production is stable and OPEC+ insists on gradual development. After the plan to increase 400,000 barrels per day, some traders are waiting for confirmation."
Oil rebounded to a multi-year high last week, aided by the rebound in demand after the epidemic, and the Organization of the Petroleum Exporting Countries and Russia-led allies (OPEC+) insisted on gradually increasing production by 400,000 barrels per day per month, despite major consumer countries’ calls for increased oil Yield.
The Iraqi Ministry of Petroleum said in a statement on Monday that Iraq’s oil exports in October increased from 3.081 million barrels per day in the previous month to 3.12 million barrels per day. Oil revenues increased to 7.68 billion U.S. dollars in October, with an average price of 79.376 U.S. dollars per barrel.
However, a survey published on Monday (November 1) showed that OPEC member countries produced 27.5 million barrels per day in October, an increase of 190,000 barrels per day from the previous month, but lower than the OPEC+ supply agreement plan of 244,000 barrels. The increase per day, the involuntary shutdown of some smaller oil-producing countries offset the impact of increased supply from countries such as Iraq.
The largest decline in production was in Nigeria, which decreased by 70,000 barrels per day. The country’s production was disrupted again after recovering in September.
Rystad Energy analyst Louise Dickson said: "OPEC+'s production adjustment pace may lag behind the development of demand, rather than risk taking action in advance, and ultimately suffer again."
The State Administration of Grain and Material Reserves of China stated last Sunday (October 31) that it has recently carried out annual national reserve product oil rotation work. The gasoline and diesel out of the warehouse in this rotation will be used to increase market resources and ease supply tensions.
A preliminary survey conducted on Monday showed that US crude oil inventories were expected to rise last week, while gasoline and distillate inventories may decline. The investigation was conducted before the American Petroleum Institute (API) released its inventory report on Tuesday and the U.S. Energy Information Administration (EIA) released its report on Wednesday.
The Biden administration on Tuesday will announce a plan to reduce methane emissions of the national greenhouse gas, starting with oil and gas wells, pipelines and other infrastructure as part of its broader strategy to combat climate change.
Bonus rebate to help investors grow in the trading world!
Or try Free Demo Trading
