Oil price glut fears amid rising glut
Members of the energy cartel, the Organisation of Petroleum Exporting Countries, OPEC are anticipating glut supply and possible price slump after an emergency oil release by the United States on Wednesday.
Reuters reports OPEC, including Russia and allies, known as OPEC+ will meet on December 1-2 to set policy in response to the emergency oil release by the US.
At Thursday’s trading, Brent crude futures gained 7 cents to $82.32 a barrel at 1127 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 12 cents, or 0.2%, to $78.27 a barrel.
A source from OPEC told Reuters he expects the U.S. release to swell a surplus in oil markets by 1.1 million barrels per day (bpd).
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“The bold move from the oil importers has opened the door wide open for OPEC+ to adjust its supply policy downwards at its next (meeting on) 2 December 2021,” Rystad Energy analyst Louise Dickson said.
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OPEC+ has been adding 400,000 barrels per day of supply since August, unwinding record output cuts made last year when pandemic curbs slammed demand.
Three sources told Reuters OPEC+ is not discussing pausing its oil output increases, despite the decision by the United States, Japan, India and others to release emergency oil stocks.
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OPEC members, the United Arab Emirates and Kuwait said they were fully committed to the OPEC+ agreement and had no prior stance ahead of next week’s meeting.