Home Business Oil drops on China fuel reserves release; OPEC+ meeting in view
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Oil drops on China fuel reserves release; OPEC+ meeting in view

by maria
17 views

By Yuka Obayashi

TOKYO (Reuters) -Oil prices dropped on Monday as China’s release of gasoline and diesel reserves eased concerns over tight global supply, while investors cashed in ahead of a Nov. 4 meeting of major crude producers that could increase future production targets.

Brent crude futures dropped 46 cents, or 0.6%, to $83.26 a barrel by 0746 GMT, after gaining 6 cents on Friday.

U.S. West Texas Intermediate (WTI) crude futures slid 64 cents, or 0.8%, to $82.93, having risen 76 cents on Friday.

The drops came after China said in a rare official statement that it had released reserves of the two fuels to increase market supply and support price stability in some regions.

“Behind the selling was China’s release of fuels reserves, which reflected Beijing’s intention to stabilise oil prices, just like coal prices,” said Chiyoki Chen, chief analyst at Sunward Trading.

“Also, investors took profits ahead of an OPEC+ meeting,” Chen said.

All eyes are on the Nov. 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, together called OPEC+, with analysts expecting them to stick to a plan to add 400,000 barrels per day of supply in December.

Money managers cut their net long U.S. crude futures and options positions in the week to Oct. 26, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Oil prices rallied to multi-year highs last week, helped by the decision by OPEC+ to maintain its planned output increase rather than raising it on global supply concerns.

U.S. President Joe Biden on Saturday urged major G20 energy producing countries with spare capacity to boost production to ensure a stronger global economic recovery as part of a broad effort to pressure OPEC+ to increase oil supply.

But Iraq’s state oil marketing company, SOMO, said on Saturday Iraq sees no need to take any decision to increase its production capabilities beyond what has already been planned for OPEC countries.

Kuwait supports the plan to increase global oil supply which has been already agreed by OPEC+, the Gulf nation’s oil minister Mohammad Abdulatif al-Fares said on Monday, according to state news agency KUNA.

“Investors will likely resume buying after confirming the OPEC+ decision on Thursday,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

A Reuters poll showed that oil prices are expected to hold near $80 as the year ends, as tight supplies and higher gas bills encourage a switch to crude for use as a power generation fuel.

Spurred by rising oil prices, U.S. energy firms added oil and natural gas rigs for a 15th month in a row in October, taking them to the highest since April 2020, energy services firm Baker Hughes Co said on Friday.

Exxon and Chevron are looking to add drilling rigs in the Permian shale basin after sharply cutting crews and output in the region last year, the companies said Friday.

(Reporting by Yuka Obayashi; Editing by Richard Pullin and Kenneth Maxwell)

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More