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Market News Iranian nuclear talks "resurgence", oil prices continue to fall, and long-awaited OPEC+ meeting rescue

Iranian nuclear talks "resurgence", oil prices continue to fall, and long-awaited OPEC+ meeting rescue

On November 4, US crude oil fell for the third consecutive day. On Tuesday, it fell by more than 4%. The resumption of the Iranian nuclear agreement hit the bulls. The OPEC+ meeting later is expected to bring support to oil prices.

2021-11-04
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US crude oil fell for the third consecutive day on Thursday (November 4). On Tuesday, it fell by more than 4%. US crude oil inventories increased sharply and Iran agreed to restart nuclear negotiations at the end of November. The oil market was plunged. However, natural gas prices rose sharply and OPEC+ stood still. Expectations still support oil prices.


U.S. crude oil inventories increased, while gasoline fell to a four-year low


The US EIA said on Wednesday that US crude oil inventories increased more than expected, but due to stable demand, gasoline inventories fell to a four-year low.

Crude oil inventories increased by 3.29 million barrels to 434.1 million barrels in the week ending October 29, while analysts surveyed expected an increase of 2.2 million barrels.

This is partly due to the increase in total US crude oil production by 200,000 barrels per day to 11.5 million barrels. In addition, the United States has released approximately 1.7 million barrels from its strategic reserves, which is also part of the reason for the increase in overall commercial inventories.

EIA said that US gasoline inventories fell by 1.488 million barrels this week to 214.3 million barrels, putting these inventories at their lowest level since November 2017.

Gasoline inventories in the Midwest and East Coast both hit their lowest levels since November 2014, thanks to stable demand for road fuels, which account for nearly half of U.S. consumption.

Phil Flynn, a senior analyst at the Price Futures Group in Chicago, said: "Despite high oil prices, gasoline demand remains strong. The refinery is operating better than expected, so it has a supporting role. The refinery is resuming work."

The refinery operating rate rose 1.2 percentage points to 86.3% of total capacity, although overall crude oil processing fell by 250 million barrels last week, the EIA said.

Iran agrees to resume negotiations on November 29 to resume the 2015 Iran nuclear agreement


While Western countries are increasingly worried about Iran’s nuclear development, Iran’s top nuclear negotiator said on Wednesday that negotiations to resume the 2015 Iran nuclear agreement will be resumed on November 29.

Since June, negotiations have been stalled. The six rounds of talks so far have been conducted indirectly. Mainly European diplomats shuttle between US and Iranian officials because Iran refuses to have direct contact with the United States.

US State Department spokesperson Ned Price said the United States hopes that Iran will return in good faith and is ready to negotiate. The United States believes that the talks should resume where the negotiations were interrupted in June.

Earlier on Wednesday, the secretary of Iran’s Supreme National Security Council stated that unless U.S. President Biden can guarantee that the United States will not abandon the Iran nuclear agreement again, negotiations to restore the agreement will fail.

Russian gas pipeline is in adversity in Europe


Data on the German operator’s website shows that a major Russian pipeline that supplies natural gas to Europe is still in trouble after a request to transport natural gas westward into Germany was suddenly withdrawn.

Since Saturday, Russian gas has not flowed into Germany through the pipeline. Conversely, supply is being shipped from Germany to Poland, causing benchmark European natural gas futures to rise nearly 18% this week.

This shift took place against the backdrop of soaring gas prices in Europe and some politicians in the region accusing the Kremlin of not increasing supplies.

Traders said that unless there is evidence that Russian natural gas continues to be sent to Western Europe through pipelines, it is unlikely that natural gas prices will fall sharply.

At this time of the year, the European gas storage facilities controlled by Gazprom have less natural gas than usual, and Russia says it is focusing on replenishing domestic stocks before releasing more natural gas to Europe. It expects that its replenishment process will be completed by November 8.
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