Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Lower; OPEC Points to Dampened Q4 Demand

CommoditiesNov 11, 2021 09:20
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse   

Investing.com -- Crude weakened Thursday, extending sharp losses after OPEC warned that the current elevated energy prices would likely have a negative impact on demand in the final quarter of this year.

By 9 AM ET (1400 GMT), U.S. crude futures were down 0.5% at $80.97 a barrel, after dropping 3.3% on Wednesday, while Brent futures fell 0.3% to $82.41, after falling 2.5% during the previous session. 

U.S. Gasoline RBOB Futures were up 0.2% at $2.3005 a gallon.

The Organization of the Petroleum Exporting Countries, a group of major producers known as OPEC, said in its monthly report released Thursday that it expects oil demand to average 99.49 million barrels per day in the fourth quarter of 2021, down 330,000 barrels from last month's forecast.

The group cited high energy prices as the reason for the reduction in oil demand, but it stuck to its prediction of robust growth to above pre-pandemic rates in 2022.

Oil prices suffered sharp falls on Wednesday after data showed U.S. inflation increased at the fastest rate in 30 years, lifting the dollar on increased expectations of an early Federal Reserve interest rate hike to the detriment of commodities priced in the U.S. currency. 

Also weighing was the rise in U.S. oil stocks after a government release of some strategic reserves, increasing speculation that the U.S. government will tap the country’s Strategic Petroleum Reserve to drive down prices.

That said, it’s debatable how seriously traders were taking the potential threat of additional supply from the SPR given the Biden administration has largely followed policies that indicated it wanted to limit domestic oil and gas production.

“Ultimately, it’s OPEC+ that holds the power at this point and it’s unlikely that we’ll see any action from them this side of the new year. That should keep oil prices elevated for now,” according to analysts at MarketPulse. 

Earlier this month OPEC and its allies, a group known as OPEC+, decided to stick to its existing pace of easing the record output cuts put in place at the start of the pandemic, agreeing to increase supply by just 400,000 barrels a day.

 

Crude Oil Lower; OPEC Points to Dampened Q4 Demand
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email