| At 10:12 am Singapore time (0212 GMT), the ICE January Brent futures contract was down 15 cents/b (0.19%) from the previous close at $79.55/b, while the NYMEX January light sweet crude contract fell 31 cents/b (0.40%) to $76.44/b.
The decline on Nov. 23 comes after oil prices bounced off 7-week lows in the overnight session, after OPEC delegates said the wider OPEC+ producer group was reassessing its monthly output hikes in response to any state oil reserve release. “There are no concerns at this time about the US and China releasing crude from strategic reserves because if the market were to be oversupplied, OPEC+ has the option of not increasing or reducing production,” one delegate told S&P Global Platts, asking not to be named to discuss private deliberations. (S&P Global Platts)
His comments were echoed by International Energy Forum Secretary General Joe McMonigle, who is in frequent contact with OPEC+ ministers. The comments will bring into focus the tussle between OPEC+ and the Biden-led group of countries over the direction of oil prices. Some analysts have said that any state oil reserve release would be sizeable, with estimates in the range of 35 million to 120 million barrels. Nonetheless, analysts at Goldman Sachs said Nov. 22 that the slide in global oil prices to below $80/b over the last month has “overshot” market fundamentals, with concerns over the return of lockdowns over COVID-19 cases in Europe and a slowdown in China overshadowing an ongoing supply deficit. (S&P Global Platts)
Nonetheless, gains remained capped by concerns over rising COVID-19 cases in Europe and a potential release of Japanese and Indian oil reserves. Essentially, the major worries for bullish traders at this time are oversupply and weak demand.
OIL MARKET ROUND-UP: (Bloomberg)
* OPEC+ Warns of Response as Biden Poised for Oil Reserve Release
* Oil Inventory at Key Cushing Storage Hub Likely Rose Last Week
* PetroVietnam Hits 2021 Domestic Crude Oil Output of 7.99M Tons
* Nine House Democrats Urge Biden to Block U.S. Oil Exports: CNN
* U.S. Gasoline Barges Travel to Western Canada After Flood Damage
* Heating Fuel Premium Slumps on Outlook for Mild Winter: Chart |
