2021-11-12 12:40:00
OIL PRICE: NEAR $82 ANEW
REUTERS - Nov 12 - Oil prices fell on Friday, wiping out gains from the previous session, as the dollar continued to gain on bets the U.S. central bank will bring forward plans to raise rates to tame inflation.
U.S. West Texas Intermediate (WTI) crude futures fell 61 cents, or 0.8%, to $80.98 a barrel at 0749 GMT, reversing Thursday's 25 cent gain.
Brent crude futures dropped 65 cents, or 0.8%, to $82.22 a barrel.
"The greenback may hold its strength until the expectation of a more hawkish Fed is fully digested by the market, which may not be sooner than mid-2022. Before that happens, a strong dollar can be a possible headwind for higher oil prices," said Leona Liu, analyst at Singapore-based DailyFX.
Both benchmark crude contracts were poised to end the week lower after sharp moves up and down, driven by a soaring dollar and speculation on whether the Biden administration might release oil from the U.S. Strategic Petroleum Reserve to cool prices.
"The market is in a finely balanced situation," said Westpac senior economist Justin Smirk.
While the market is tightly supplied, he said the bigger issue is the change in the demand dynamic, as the market moves away from a strong recovery driven by a revival in demand for goods - which has stoked energy demand - toward a recovery in demand for services.
There are positive signs on the demand side, with air travel rapidly picking up, but tighter monetary and fiscal policy and the oncoming northern hemisphere winter will act as a dampener.
The Organization of the Petroleum Exporting Countries (OPEC) on Thursday cut its world oil demand forecast for the fourth quarter by 330,000 barrels per day from last month's forecast, as high energy prices curb the recovery from COVID-19.
"Although oil price may benefit from the recovering demands, soaring energy prices and a more sticky inflation may damp the growth prospects, thus to curb oil's topside potential," analyst Liu said.
OPEC, Russia and allies, together called OPEC+, agreed last week to stick to plans to add 400,000 barrels per day to the market each month.
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Earlier:
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, 12:25:00
OIL PRICE: NEAR $85 ANEW
Brent were at $85.22 a barrel, WTI rose 16 cents, or 0.2%, to $84.31 a barrel.
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, 17:25:00
OIL PRICE: NOT ABOVE $84
Brent rose 31 cents, or 0.4%, to $83.74 a barrel, WTI advanced 36 cents, or 0.4%, to $82.29
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.
2021, November, 8, 12:30:00
OIL PRICE: ABOVE $83 ANEW
Brent was up by 86 cents or 1% at $83.60 a barrel, WTI gained 89 cents or 1.1% to $82.16.
2021, November, 8, 12:25:00
OPEC+ 400 TBD
Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of December 2021, as per the attached schedule.
