Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Prices Rise as OPEC Members Struggle to Raise Output

CommoditiesOct 18, 2021 09:52
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Crude oil prices came off fresh seven-year highs in early trading in New York on Monday but remained well supported by signs that key producers are struggling to raise output to meet world demand.

By 9:40 AM ET (1340 GMT), U.S. crude futures were up 1.2% at $82.66 a barrel, having earlier hit a high of $83.14, their highest since 2014. Brent futures, the global benchmark, were up 0.8% at $85.55 a barrel.

U.S. Gasoline RBOB Futures, meanwhile, were up 0.5% at a fresh seven-year high of $2.4990 a gallon.

Earlier, Bloomberg reported, citing unnamed sources close to the bloc, that the Organization of the Petroleum Exporting Countries produced an average of nearly 750,000 barrels a day below the ceiling under a deal with Russia and others in September. Sources attributed it to past problems of under-investment in Nigeria and Angola.

Separately, Kuwait, the fourth-biggest producer in OPEC after Saudi Arabia, Iraq and the United Arab Emirates, said that its sustainable output capacity had also fallen by an average of 227,000 barrels a day to 2.579 million barrels a day in its fiscal 2021 year.

The sight of OPEC producers struggling to meet output targets at a time when world demand is rising due to the easing of pandemic-related restrictions on mobility is aggravating an imbalance between supply and demand. Global inventories are already at their lowest in three years.

Overnight, Japan joined the list of net energy importers calling on OPEC and its allies to do more to keep a lid on prices. Japan is one of many countries fearing that high energy prices will kill the economic recovery – albeit there are more signs of that in places where natural gas and coal prices have forced utilities and energy-intensive companies to cut output.

However, there was some sign of relief on the demand side earlier, as China’s third-quarter gross domestic product data for the third quarter showed the world’s second-biggest economy – and its biggest oil importer – slowing more sharply than expected.

In particular, China’s independent refiners – known as ‘teapots’ – reduced their throughput to the lowest in 16 months as Covid-19-driven lockdowns depressed mobility and a creeping energy crisis stunted industrial demand.

Crude Oil Prices Rise as OPEC Members Struggle to Raise Output
 

Related Articles

Omicron rattles oil markets but impact unclear
Omicron rattles oil markets but impact unclear By Reuters - Nov 29, 2021 1

By Florence Tan, Heekyong Yang and Noah Browning (Reuters) - The Omicron coronavirus variant kicked oil prices lower late last week and has sapped refining margins, but with crude...

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