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Market News International oil prices expand the upward trend, the UAE oil chief hints that oil-producing countries will respond to the release of reserves

International oil prices expand the upward trend, the UAE oil chief hints that oil-producing countries will respond to the release of reserves

On November 24, international oil prices went up, further amplifying the gains of the previous two trading days, because investors remained skeptical about the effectiveness of the US-led release of strategic oil reserves and turned their attention to the downward trend of oil-producing countries. One step action. The UAE Energy Minister pointed out that the United States has cooperated with major energy consumers in Asia to release crude oil from its strategic reserves without consulting with oil-producing countries.

2021-11-24
10893
On Wednesday (November 24), international oil prices rose, further amplifying the gains of the previous two trading days, as investors remained skeptical about the effectiveness of the US-led release of strategic oil reserves and turned their attention to oil production. China’s next move.

GMT+8 16:33, NYMEX crude oil futures rose 0.48% to 78.88 US dollars per barrel; ICE Brent crude oil futures rose 0.49% to 82.71 US dollars per barrel.


The United States said on Tuesday (November 23) that it would release tens of millions of barrels of oil from its strategic oil reserves and work with China, India, South Korea, Japan and the United Kingdom to cool oil prices. Previously, the Organization of Petroleum Exporting Countries and its partners (OPEC+) have repeatedly ignored the requirements of the United States and other major crude oil consuming countries to accelerate production, and insisted on its plan to increase production by 400,000 barrels per day since August. OPEC+ will hold a meeting on December 2.

The Indian government issued a statement on Tuesday that India will coordinate with other major oil buyers, including the United States, to release 5 million barrels of oil from its strategic reserves. However, the Indian government has not announced a specific timetable for the release of reserves.

As the world's third largest oil importer and consumer, India has always expressed concern about rising oil prices. The Indian government statement stated: “India has repeatedly expressed concerns about oil-producing countries artificially adjusting oil supply below the demand level, leading to price increases and the consequent negative consequences.”

Japan’s Minister of Industry Akira Hagi said on Wednesday that Japan will release "several hundreds of millions of liters" of oil from its national reserves, but the sale time has not yet been determined. Nikkei reported that by the end of this year, Japan will auction approximately 4.2 million barrels of oil from its national inventory.

However, analysts said that after years of investment decline and the global economy's strong recovery from the new crown pandemic, the impact of multi-country coordinated release of reserves on prices may be short-lived. Goldman Sachs analysts said that the coordinated release of reserves may increase the supply of crude oil by about 70 to 80 million barrels, which is lower than the market's expectations of more than 100 million barrels.

Satoru Yoshida, a commodity analyst at Rakuten Securities, said: “Investors are disappointed by the small scale of oil released by the United States and other countries. In addition, the collective release of oil reserves by oil-consuming countries has triggered people’s concerns that oil-producing countries may slow down the pace of production increase. Worries."

Barclays Bank said: "We believe that strategic oil reserves cannot be a sustainable source of supply. The impact of this intervention on the market is only temporary." But Barclays also pointed out that the continued surge in new crown cases poses a major risk to the oil market's prospects. , Because this may put pressure on demand, although OPEC+ may slow down or even suspend its gradual release of capacity.

UAE Energy Minister Suhail Al-Mazrouei said on Tuesday that when all indicators show that there will be an oversupply in the first quarter of next year, he believes it is illogical for the Gulf OPEC countries to supply more oil to the global market. "We are looking at all technical data. ."

He also said that there should be no supply worries in the second quarter of next year. He also pointed out that the United States cooperates with major energy consumers in Asia to release crude oil from its strategic reserves to reduce energy prices is a "national affair." "They will not negotiate with us when increasing or reducing SPR (Strategic Petroleum Reserve). "
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