Fuel prices fall back on supply and demand

An employee collects crude oil samples at a well run by Venezuela’s state-owned oil company PDVSA on July 28, 2011. REUTERS / Carlos Garcia Rawlins

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  • Japan signaled its intention to release oil reserves.
  • Europe is battling the fourth cholera virus
  • The US dollar traded high for 16 months

LONDON, Nov. 22 (Reuters) – Demand for COVID-19 in Europe has risen sharply on Monday, with concerns about supply and demand weakening as Japanese oil reserves could be released.

Brent crude fell 56 cents or 0.7% to $ 78.33 a barrel at 1157 GMT and US West Texas Intermediate (WTI) crude fell 54 cents or 0.7% to $ 75.40.

According to London-based PVM Oil Associates oil analyst Tamas Varga, the prospects for national locks in Europe have raised concerns about economic growth and oil demand.

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Investors were looking for safe havens, such as the dollar, at the beginning of the session, which helped significantly reduce oil prices, Varga added.

Tens of thousands, mostly right-wing supporters, protested in Vienna on Saturday after the Austrian government announced a new lockout. Germany could also impose new sanctions when politicians argued for locking up unvaccinated people. Read more

The US dollar traded higher on Monday against the euro for 16 months, making the dollar more expensive for buyers. Read more

Meanwhile, hopes of releasing oil from the Strategic Petroleum Reserve (SPR) have kept Brett at $ 80 million, despite the price pressure on oil.

Japanese Prime Minister Fumio Kishida said on Saturday that the United States was ready to assist in efforts to combat rising oil prices after a request for oil reserves. Read more

“The price of gasoline is around $ 4 a gallon,” said Fred Fescaraki, chairman of Fact Global Energy.

However, he added that any release of SPR would have a short effect of two or three weeks before everything was restored.

Combined SPR emissions could range from 100 million to 120 million barrels or more, City analysts said in a November 19 note that this includes 45 million to 60 million barrels from the United States, 30 million barrels from China, and 5 million barrels. It is estimated that there are 10 million barrels of oil from India and Japan and South Korea each.

Growing in Libya has put pressure on prices. Libyan National Oil Company (NOC) has given permission to operate at the al-Hayr oil field near Sirte on Monday, its chairman Mustafa Sonallah said in a live broadcast.

Investors were watching developments in the Middle East after Saudi media reported on Monday that the Saudi-led coalition fighting the Iranian-backed Houthi movement in Yemen could jeopardize exploration and world trade south of the Red Sea. . Read more

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Brent & WTI’s 6-month backward structure – where immediate delivery terms are more expensive than in recent times – is becoming increasingly narrow, which has recently eased market tightness.

Additional Report by Borasgm Master Sharafadidin in London Corrected by Sonali Paul, Navin Tukral and Florence Tan in Singapore, Aaron Sheldrick by Tokyo by David Goodman

Our standards are published in The Thomson Reuters Trust Principles.

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