OPEC intends to lower production for oil storage emissions

as if Grant Smith, Salma El Wardani and Debit Chakraborti On 11/22/2021

(Bloomberg) – OPEC and its partners could reconsider plans to revive their oil supply if the world’s largest consumers go ahead with a strategic release of their oil reserves.

India has become the ultimate consumer in terms of deploying its reserves, helping the US, Japan and China to curb high energy costs. After a seven-year hike in crude oil prices, the US has urged other consumers to take stock.

But the potential is to push the OPEC + coalition – led by Saudi Arabia and Russia – to take control of world oil markets.

“Such a move would increase its role in the oil poker game and create new tensions between Washington and Riyadh,” said Helima Craft, chief marketing strategist at RBC Capital Markets LLC.

Earlier this month, the 23-nation bloc rejected calls from US President Joe Biden and others to speed up the recovery of supplies. Delegates said even a modest increase in lead could be re-evaluated when the group meets next week.

Oil traded up $ 76.95 a barrel in New York for $ 1 a barrel as traders took advantage of OPEC +. Changing tax.

“I expect OPEC + energy ministers to gradually expand their current plans,” said Joseph McMongil, secretary general of the Riyadh-based International Energy Forum.

However, McMonigle said after meeting with a Japanese Foreign Ministry official that some unforeseen externalities, such as the release of strategic stocks or new locks in Europe, could re-evaluate the market situation.

President Biden spoke on Tuesday about measures to lower oil prices.

Japan TV reports Monday that Tokyo is preparing to release its crude stock. Japanese Prime Minister Fumio Kishida said on Monday that his government, in cooperation with US Indian officials, was considering withdrawing from the reserve.

The Organization of Petroleum Exporting Countries (OPEC) and its partners will meet on December 2 to discuss increasing production to 400,000 barrels per day in January.

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