2021-11-17 13:55:00
OIL PRICE: ABOVE $81
REUTERS - Nov 17 - Oil fell on Wednesday after an industry report showed U.S. gasoline stocks dropped more than expected last week, potentially heightening pressure on the Biden administration to release oil from emergency reserves to cap soaring fuel prices.
U.S. West Texas Intermediate (WTI) crude futures fell 57 cents, or 0.7%, to $80.19 a barrel at 0750 GMT, extending a 12 cent loss from Tuesday.
Brent crude futures dropped 50 cents, or 0.6%, to $81.93, erasing Tuesday's 38 cent gain.
U.S. President Joe Biden has been considering releasing oil from the Strategic Petroleum Reserve (SPR) to cool gasoline prices, which hit a record high at California pumps this week. Lawmakers, however, have mixed views on whether it is needed. The United States is the world's biggest oil user.
U.S. House Majority Leader Steny Hoyer said late on Tuesday he did not agree with Senate Majority Leader Chuck Schumer's call on Sunday for tapping the SPR to lower gas prices, saying the reserve was there to fill a crude oil supply gap in times of emergency.
"With holiday season around the corner, increase in travelling demand may be the reason behind the decline in U.S. gasoline stocks. (Now) that may bring President Biden more pressure to release the U.S. Strategic Petroleum Reserve, which may put oil prices at risk," said Leona Liu, analyst at Singapore-based DailyFX.
"In the short-term, the upcoming EIA inventory report may act as a catalyst for the next move," she said, referring to the Energy Information Administration, which will release its weekly report later on Wednesday.
Analysts say SPR oil would only offer temporary relief and what is needed is increased supply from U.S. shale producers or the Organization of the Petroleum Exporting Countries (OPEC).
"If U.S. decides to release stocks from emergency reserves, it may weigh on prices, albeit temporarily. The impact will also be dependent on the quantum of stock release and whether it will be done once or multiple times," said Ravindra Rao, vice president, commodities, at Kotak Securities.
Data from the American Petroleum Institute industry group showed gasoline stocks fell by 2.8 million barrels for the week ended Nov. 12, according to market sources.
The drawdown was much bigger than the 600,000-barrel decrease that 10 analysts polled by Reuters had expected.
Crude inventories rose by 655,000 barrels, the market sources said. That was less than analysts' expectations for a build of 1.4 million barrels.
-----
Earlier:
2021, November, 16, 14:55:00
OIL PRICE: ABOVE $82 YET
Brent was 52 cents, or 0.6%, higher at $82.57 a barrel, WTI climbed 42 cents, or 0.5%, to $81.30 a barrel.
2021, November, 15, 12:00:00
OIL PRICE: NEAR $82 YET
Brent fell 63 cents, or 0.8%, to $81.54 a barrel, WTI lost 55 cents, or 0.7%, to $80.24 a barrel.
2021, November, 12, 12:40:00
OIL PRICE: NEAR $82 ANEW
Brent gained 70 cents, or 0.85%, to $83.34 a barrel , WTI rose 79 cents, or 1%, to $82.13.
2021, November, 12, 12:35:00
GLOBAL OIL DEMAND 2021: + 5.7 MBD
World oil demand growth in 2021 is revised lower by around 0.16 mb/d, compared to last month’s assessment, to stand at 5.7 mb/d.
2021, November, 11, 15:15:00
OIL PRICE: NEAR $82
Brent gained 70 cents, or 0.85%, to $83.34 a barrel , WTI rose 79 cents, or 1%, to $82.13.
2021, November, 10, 12:20:00
OIL PRICES 2021-22: $82-$72
We expect Brent prices will remain near current levels for the rest of 2021, averaging $82/b in the fourth quarter of 2021. In 2022, we expect that growth in production from OPEC+, U.S. tight oil, and other non-OPEC countries will outpace slowing growth in global oil consumption and contribute to Brent prices declining from current levels to an annual average of $72/b.
2021, November, 9, 17:20:00
GLOBAL OIL DEMAND GROWTH
This year, demand for petroleum, both in the United States and globally, has largely returned to the pre-pandemic levels in 2019. Demand has grown faster than supply, reducing inventories and contributing to higher prices for crude oil and petroleum products.
