Home Investing News Oil Up, Investors Awit OPEC+ Supply Decision

Oil Up, Investors Awit OPEC+ Supply Decision

by
Commodities17 minutes ago (Dec 01, 2021 09:48PM ET)

(C) Reuters.

By Gina Lee

Investing.com – Oil was up Thursday morning in Asia, reversing the previous day’s losses. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) could pause adding supply amid growing concerns about the omicron COVID-19 variant’s risk to economic recovery and fuel demand.

Brent oil futures were up 0.42% to $69.29 by 9:44 PM ET (2:44 AM GMT) and WTI futures rose 0.75% to $66.06.

“Oil prices climbed as some investors anticipate that OPEC+ will decide to maintain the current supply levels in January to cushion any damage on demand from the Omicron spread,” Fujitomi Securities Co. Ltd. analyst Toshitaka Tazawa told Reuters.

OPEC+ will meet later in the day, where it is likely to decide whether to release more oil into the market as per its plan or restrain supply. The cartel has been adding an additional 400,000 barrels per day (bpd) of output to global supply each month since August 2021.

However, omicron’s discovery has introduced uncertainty, with some investors now predicting that OPEC+ could pause these additions to avoid a supply glut.

Omicron is quickly becoming the dominant COVID-19 variant in South Africa less than four weeks after it was first discovered in the country, with the U.S. reporting its first case on Wednesday.

The U.S. could adjust the timing of its planned release of strategic crude oil stockpiles if global energy prices drop substantially, said Deputy Energy Secretary David Turk.

Meanwhile, Wednesday’s U.S. crude oil supply from the U.S. Energy Information Administration showed a draw of 910,000 barrels in the week to Nov. 26. Forecasts prepared by Investing.com predicted a 1.237-million-barrel draw, while a 1.017-million build was recorded during the previous week.

Crude oil supply from the American Petroleum Institute released a day earlier, showed a draw of 747,000 barrels.

Oil Up, Investors Awit OPEC+ Supply Decision

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.

Related News