Rising oil prices despite the supply of strategic reserves to major consumers
The United States announced yesterday (December 23rd) that it, along with China, India, South Korea, Japan, Britain and China, would sell 50 million barrels of strategic reserves to reduce crude oil prices, Reuters reported on Wednesday. .
However, analysts believe that the decline in investment in the industry and the improvement in the global economic situation after the corona epidemic subsides will have a small effect on short-term oil prices and, according to US investment bank Goldman Sex, a “drop in the ocean”. Be.
According to Reuters, the price of Brent North Sea crude oil last night increased by $ 2.61, or 3.3 percent, to $ 82.31. West Texas Intermediate rose $ 2.75, or 2.3 percent, to $ 78.50.
Earlier, news of major crude oil consumers’ intentions for strategic reserves and falling prices, the appreciation of the dollar and the possible negative impact of a new wave of the corona epidemic in Europe on crude demand had pushed Brent oil prices down 10 percent.
Edward Moya, a senior market analyst, told Reuters that the coordinated supply of strategic reserves was lower than expected and that OPEC Plus would no doubt face lower production. The 23rd meeting of oil ministers of OPEC member and non-member countries will be held on December 2 (December 4).
Reuters reported yesterday in an analysis that OPEC Plus had resisted pressure to increase crude oil production, adhered to its plan to gradually increase 400,000 barrels of crude oil per day, and said it feared more production would saturate the market. End of 2022.
However, OPEC Plus is not even able to achieve its stated goal. According to the International Energy Agency, the group’s production in September and October was 700,000 barrels per day less than the target.
The Corona epidemic and environmental policies have led to declining investment in the oil industry of major producers, especially the poor OPEC members, and currently only three members, Iraq, the United Arab Emirates and Saudi Arabia, have the capacity to increase production relatively quickly. .
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