Oil prices deepened their decline by about 3%, during trading today, Wednesday, as US crude fell below $ 82, after the release of data on crude stocks in the United States.
This comes with mounting pressure on OPEC + to increase supplies, as the alliance is scheduled to meet tomorrow, Thursday, to discuss market conditions and stability on the production plan during next January.
Oil Prices Today
By 03:04 PM GMT (06:03 PM Mecca Al-Mukarramah), Brent crude futures prices – January 2022 delivery – fell by 2.6%, recording $82.53 a barrel.
The prices of West Texas Intermediate crude futures – for December delivery – also fell by about 3%, recording $81.38 a barrel.
US Oil Stocks
Oil inventories in the United States rose for the second week in a row by about 3.3 million barrels, bringing the total to 434.1 million barrels.
Gasoline stocks fell in the United States by 1.5 million barrels, while distillate stocks rose by 2.2 million barrels.
In a sign that higher prices are encouraging more supply elsewhere, British oil company BP said it would ramp up its investment in the US shale oil and gas business to $1.5 billion in 2022, from $1 billion this year.
“Crude oil prices fell after the American Petroleum Institute announced that crude oil inventories increased for the sixth week in a row, and with the Biden administration exhausting every potential appeal to OPEC + members before benefiting from the strategic oil reserve,” said Edward Moya .
He added, “World leaders are running out of papers to put pressure on OPEC +, and this means that it is likely to buy any decline that comes from exploiting strategic reserves from China or the United States.”
US President Joe Biden, speaking at the climate summit in Glasgow, blamed higher oil and gas prices on OPEC’s refusal to pump more crude.
The Organization of the Petroleum Exporting Countries and its allies from abroad, led by Russia in the alliance known as OPEC +, meet tomorrow, Thursday, to review its policy, and they are expected to reaffirm their plans for monthly increases.
SOURCE : OIL NEWS