Three sources told “Reuters” that OPEC + is not discussing stopping oil production increases despite the decision of the United States, Japan, India and other countries to release the emergency oil stocks.
Traders are also awaiting whether China will follow the example of these countries and release oil from its reserves.
The United States and a few other countries agreed to withdraw from reserves after failing to persuade “OPEC +” to pump more crude, while a jump in US gasoline prices increased pressure on President Joe Biden amid high inflation and a decline in his popularity.
“OPEC +” argues that the world will soon face a new supply glut despite the rise in oil prices to their highest levels since 2014 above $ 85 a barrel.
“OPEC +” meets next week to discuss the balance between demand and supply in the oil markets.
Oil prices fell, today, Thursday, as investors waited to see how major producers would respond to an emergency release of crude from the reserves of major consumer countries with the aim of calming the market, despite data indicating strong demand for fuel in the United States.
US West Texas Intermediate crude futures fell nine cents, or 0.1%, to $ 78.30 a barrel by 02:01 GMT, continuing to incur losses after falling 11 cents on Wednesday.
“The coordinated release of the SPR could end up in a near-term political win for the parties involved, but we don’t think it will have a lasting impact on crude fundamentals,” Jake Libby, an analyst at Fitch, said in a note.
Analysts said that US Energy Information Administration data released on Wednesday showed that gasoline and distillate stocks fell more than expected even as crude stocks increased, indicating the market needs more oil.
“But the bigger picture is that production demand remains solid, adding pressure on a tight market,” Kieran Tomkins, an economist at Capital Economics, said in a note.
All eyes are now turned to the “OPEC +” group, which includes the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies, and is scheduled to meet next week to discuss demand and oil supply.
“The bold move from oil importers has opened the door wide for OPEC+ to adjust its supply policy lower at its next (meeting) on December 2, 2021,” Louise Dixon, an analyst at Rystad Energy, said in comments via email.
The group is adding 400,000 barrels per day of supply each month, reversing record production cuts last year when pandemic restrictions hit demand.
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