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

Oil Falls, WTI Slips Almost 2.7%, Over Q1 Supply Glut Fears

CommoditiesNov 25, 2021 23:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Oil was down Friday morning in Asia, sliding more than 1% over concerns that a U.S.-led coordinated release of crude reserves among major consumers could lead to a global supply surplus in the first quarter of 2022.

Brent oil futures fell 2.02% to $80.56 by 10:57 PM ET (3:57 AM GMT) and WTI futures slid 2.56% to $76.35. There was no settlement for WTI on Thursday due to a holiday in the U.S.

The release from the Strategic Petroleum Reserve, announced by U.S. President Joe Biden earlier in the week, will see millions of barrels of oil released in coordination with other key consuming nations, including China, India, and Japan.

The release will likely lead to a swell in supplies over the coming months, according to the findings of the Economic Commission Board (ECB) that advises the Organization of the Petroleum Exporting Countries (OPEC), an OPEC source told Reuters.

The board also expects a 400,000 barrels-per-day (bpd) surplus in December 2021, expanding to 2.3 million bpd in January 2022 and 3.7 million bpd in February if consumer nations go ahead with the release, the source added.

Forecasts of rising surplus oil are clouding the outlook of the next OPEC and allies (OPEC+) meeting on Dec. 2. The cartel will decide whether it will continue raising output by 400,000 bpd in January.

However, both Brent and WTI contracts are headed towards their first weekly gain in nearly a month. The overall volume of the crude reserve release, around 70 million to 80 million barrels, was smaller than expected.

"Since the volume is small, I think it is aimed at easing tightness in supply, rather than having a big impact on oil markets," Petroleum Association of Japan president Tsutomu Sugimori told the media on Thursday.

Oil Falls, WTI Slips Almost 2.7%, Over Q1 Supply Glut Fears
 

Related Articles

Oil gains more than $1/bbl after Saudi price hike
Oil gains more than $1/bbl after Saudi price hike By Reuters - Dec 05, 2021

By Florence Tan SINGAPORE (Reuters) - Oil prices rose by more than $1 a barrel on Monday after top exporter Saudi Arabia raised prices for its crude sold to Asia and the United...

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