Crude Oil Edges Lower as Major Economies Amp Up Pressure for OPEC to Raise Output

  • 03 November, 2021
  • 12:41 pm EET

Crude oil edged lower as OPEC dodged calls to raise its production and was still expected to stick to the scheduled 400,000 barrels per day output boost, Australia’s ANZ Bank said in a Wednesday note.

US President Joe Biden led calls from major economies for OPEC to boost output beyond the scheduled amount, with Japan joining as its trade and industry minister asked the alliance to hold discussions to stabilize the market as the global energy crisis continues, the bank noted.

Crude oil demand has recovered to above 100 million b/d, a level not seen since the start of the pandemic, ANZ Bank said, citing a statement by oil major BP Plc. The International Energy Agency also said it is monitoring the market and is ready to act when needed, the bank said. OPEC is set to discuss its supply agreement on Thursday.


European gas futures saw gains on market concerns that Russia may not push through with increasing gas flows into the continent, with Dutch front-month gas futures rising 3% to 67.61 euros/t, ANZ Bank said.

While Russian President Vladimir Putin ordered Gazprom to start refilling its European storage facilities from early November, the state majority-owned gas company declined to book more pipeline capacity for supplies sent via Ukraine and Poland in the first quarter of 2022 at auctions on Tuesday, according to ANZ Bank. The first quarter is typically the peak period for demand.


The price move in Europe supported LNG prices in Asia as JKM futures climbed nearly 6% to $30.80 per million British thermal units, ANZ Bank noted. Power shortages in India and other countries are prompting importers to dip into the spot market despite high prices, the bank said.

By MT Newswires

Reliable Trading since 2012