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Market News The United States is weighing options to deal with high oil prices, and oil prices have risen by nearly 1%, and the upward trend has slowed
The United States is weighing options to deal with high oil prices, and oil prices have risen by nearly 1%, and the upward trend has slowed
U.S. oil closed 0.8% higher on November 8, and settled at US$81.93 per barrel. Positive signs of global economic growth support the outlook for energy demand. Oil prices rose by 1.7% early in the session, but after the United States issued a signal to curb oil and gasoline prices, the rise in crude oil cooled down
2021-11-09
10566
On Monday (November 8), U.S. oil rose by 0.68 US dollars, an increase of 0.81%, and the settlement price was reported at 81.93 US dollars per barrel. Bilbao oil rose 0.69 US dollars, or 0.83%, to close at 83.43 US dollars per barrel. Earlier, the two major contracts both rose by more than $1. The market showed a sideways trend for most of Monday afternoon. Investors are waiting to see whether the US will release crude oil from its strategic reserves, and how large it will be if it is released.
US Secretary of Energy Jennifer Granholm said that President Biden may issue an announcement this week in response to high oil and gasoline prices. Granholm did not specify any specific measures, but the United States has stated that the release of strategic oil reserves is an option it considers. Some analysts said that Biden may use strategic oil reserves.
John Kilduff, the founding partner of Again Capital LLC, said that only the United States and other oil-consuming countries can work together to drastically lower prices, and they must make big moves to have a real impact. If you can do this, you will see a repeat of last week's sell-off; but if you can't, it will be a buying opportunity.
The Biden administration is waiting for a report on Tuesday before deciding whether to use the Strategic Petroleum Reserve to deal with high gasoline prices. The report will elaborate on the government's outlook on energy prices, consumption and supply. Last month, the report predicted that as the oil market returns to excess, gasoline and crude oil prices will begin to fall next year. Since the report was released on October 13, the US benchmark crude oil price has exceeded $85 per barrel because global oil demand has recovered more quickly from the epidemic than energy production.
According to data from the US Department of Energy, crude oil inventories in the US Strategic Petroleum Reserve decreased by 3.14 million barrels last week, the largest weekly decline since July 2017, and inventories have fallen to their lowest level since 2003. As of November 5, the US Strategic Petroleum Reserve totaled 609.4 million barrels, of which 356.9 million barrels were sour crude oil. Weekly data will be released on Wednesday.
However, Saudi Arabia last weekend supported oil prices by increasing some of its official selling prices the most in decades; despite the price increase, Asian buyers may fulfill their purchase contracts in full next month, indicating strong market demand.
At the same time, US President Biden praised Congress on Saturday for passing the long-delayed $1 trillion infrastructure bill. The bill may promote growth and demand for fuel. Phil Flynn, senior analyst at Price Futures Group, said: "Currently global supply is in short supply, and the'Building a Better Future Plan' may exacerbate this situation. The Biden administration has little to do to meet this demand."
(U.S. oil hour chart)
US Secretary of Energy Jennifer Granholm said that President Biden may issue an announcement this week in response to high oil and gasoline prices. Granholm did not specify any specific measures, but the United States has stated that the release of strategic oil reserves is an option it considers. Some analysts said that Biden may use strategic oil reserves.
John Kilduff, the founding partner of Again Capital LLC, said that only the United States and other oil-consuming countries can work together to drastically lower prices, and they must make big moves to have a real impact. If you can do this, you will see a repeat of last week's sell-off; but if you can't, it will be a buying opportunity.
The Biden administration is waiting for a report on Tuesday before deciding whether to use the Strategic Petroleum Reserve to deal with high gasoline prices. The report will elaborate on the government's outlook on energy prices, consumption and supply. Last month, the report predicted that as the oil market returns to excess, gasoline and crude oil prices will begin to fall next year. Since the report was released on October 13, the US benchmark crude oil price has exceeded $85 per barrel because global oil demand has recovered more quickly from the epidemic than energy production.
According to data from the US Department of Energy, crude oil inventories in the US Strategic Petroleum Reserve decreased by 3.14 million barrels last week, the largest weekly decline since July 2017, and inventories have fallen to their lowest level since 2003. As of November 5, the US Strategic Petroleum Reserve totaled 609.4 million barrels, of which 356.9 million barrels were sour crude oil. Weekly data will be released on Wednesday.
However, Saudi Arabia last weekend supported oil prices by increasing some of its official selling prices the most in decades; despite the price increase, Asian buyers may fulfill their purchase contracts in full next month, indicating strong market demand.
At the same time, US President Biden praised Congress on Saturday for passing the long-delayed $1 trillion infrastructure bill. The bill may promote growth and demand for fuel. Phil Flynn, senior analyst at Price Futures Group, said: "Currently global supply is in short supply, and the'Building a Better Future Plan' may exacerbate this situation. The Biden administration has little to do to meet this demand."
(U.S. oil hour chart)
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