Oil fall on Q1 supply surplus, new difference

In Los Angeles, California, USA April 7, 2021 In Los Angeles, California, USA, an oil rig awaits an ocean outside the Long Beach-Port of Los Angeles Complex. / File photo

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Singapore, November 26 (Reuters) – Oil prices rose more than 2 percent on Friday, with fears of a sharp drop in global supply in the first quarter following the release of a new COVID-19. Alternative spooked investors.

Brent crude extended its forecast for the third quarter, falling to $ 1.69, or 2.1%, to $ 80.53 a barrel at 0327 GMT. US West Texas Intermediate (WTI) crude fell by $ 2.04 or 2.6 percent to $ 76.35. Thanks to WTI, there was no solution for Thanksgiving.

Concerns that oil prices could fall sharply in the face of large financial markets are hitting the target by restricting new volatility, with market share declining due to US holidays, said CMC Markets analyst Kelvin Wong. Read more

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The administration of US President Joe Biden announced on Tuesday that it plans to release oil from strategic reserves with China, India and Japan. Read more

According to OPEC sources, such a move could swell supply in the coming months, according to a panel of experts advising OPEC ministers. Read more

The Economic Commission for Africa (ECB) expects to earn 400,000 barrels per day in December, expanding to 2.3 million BPD in January and 3.7 million BPD in February, according to OPEC.

Increasing oil prices forecast OPEC +’s meeting between December 2 and its partners. The team is set to decide in January whether it will continue to grow by 400,000 bpd.

Still, Benchmark contracts are set to post their first weekly profit in a month because total gross domestic product – estimated at 70 million to 80 million barrels – was less than expected by market participants.

“I think it is intended to ease supply tightness rather than have a major impact on oil markets,” Tutomo Sugimori, president of the Japan Petroleum Association (PAJ), told reporters on Thursday.

The world powers and Iran will continue talks on Monday to renew the 2015 nuclear deal.

However, the failure of Iran and the International Atomic Energy Agency (IAEA) to reach a modest agreement this week over Tehran’s nuclear facilities is not good for next week’s talks, said Eurasia analyst Henry Rome.

“Iran’s failure to do so and its firm commitment to the IAEA is another sign of its desire to renew the 2015 nuclear deal,” he said in a November 24 statement.

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Edited by Christopher Cushing and Jacqueline Wong

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