Crude drops behind US-led emergency oil release

Highlights

  • Crude oil prices fell on Thursday.
  • OPEC believes the US release is expected to increase the surplus by 1.1 million barrels per day.
  • Oil watchers are now looking forward to the meeting of OPEC and its allies scheduled for December 1-2.

Crude oil prices fell on Thursday as OPEC predicted that an emergency US-led oil drain designed to lower crude oil prices would boost crude stockpiles in the country. A similar trend was seen in prices on Friday. Brent Crude oil futures for January delivery were last down 1.19% to $81.27, while WTI crude oil futures for January delivery were down 1.66% to $77.09 as of 12:19 AEDT on November 26, 2021. level traded.

Rising US stocks

OPEC believes that the US release is expected to increase the market surplus by 1.1 million barrels per day.

US President Joe Biden has previously urged OPEC and its allies, known together as OPEC+, to increase production to cool oil prices. However, the cartel does not react seriously to this. As a result, the United States, along with other major oil consumers in the world, decided to extract oil from its strategic reserves to increase supply in order to reduce rapidly rising crude oil prices.

OPEC+ has been adding 400,000 bpd of supply since August last year to phase out existing production cuts made during the pandemics.

Crude oil stocks

Crude oil stocks | Source: © Batareykin | megapixl.com

Oil watchers are now watching OPEC’s stance on this issue and looking forward to the meeting of OPEC and its allies scheduled for December 1-2 to determine oil policy for the coming months.

As a result

Crude oil prices have risen spectacularly this year as economies around the world have rebounded solidly from the lows of the pandemics. Recent declines in crude oil prices have been fueled by the US-led emergency oil release, an attempt to cool oil prices.

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