Oil prices slide amid fears of supply boost, weaker demand

Reuters2021-11-15

SINGAPORE, Nov 15 (Reuters) - Crude oil prices skidded on Monday, under pressure from expectations of higher supplies and weakening demand.

Brent crude futures fell 58 cents, or 0.7%, to $81.59 a barrel, as of 0151 GMT. U.S. West Texas Intermediate $(WTI)$ crude lost 58 cents, or 0.7%, to $80.21 a barrel.

Both markets have dropped for the last three weeks, hit by a strengthening dollar and speculation that President Joe Biden's administration might release oil from the U.S. Strategic Petroleum Reserve to cool prices.

"The White House has been debating how to tackle higher inflation, with some officials calling for the strategic reserve to be tapped, or halting U.S. exports," ANZ analysts said in a report.

U.S. energy firms this week added oil and natural gas rigs for a third week in a row with crude prices hovering near a seven-year high, prompting some drillers to return to the well pad.

The oil and gas rig count, an early indicator of future output, rose by six to 556 in the week to Nov. 12, its highest level since April 2020, energy services firm Baker Hughes Co

said on Friday.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) last week cut its world oil demand forecast for the fourth quarter by 330,000 barrels per day (bpd) from last month's forecast, as high energy prices hampered economic recovery from the COVID-19 pandemic.

Russia's Rosneft, the world's second-biggest oil company by output after Saudi Aramco, warned on Friday of a potential "super cycle" in global energy markets, raising the prospect of even higher prices as demand outstrips supply.

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精彩评论

  • b1uesky
    2021-11-15
    b1uesky
    Price will go up 
  • koolgal
    2021-11-15
    koolgal
    For now oil prices are sliding but once the floodgates of the world 's economies are opened, demand for oil will certainly increase! 🤔
    • koolgal
      Yes indeed.  Gold is a hedge against inflation
    • koolgal
      Yes indeed. Thanks for sharing
    • tklew
      是的,很多国家已经开始开放闸门。 [强]
    • b1uesky
      I also see gold price going up. Maybe can consider gold too? [财迷]
    • koolgal
      Thanks
  • SandDust
    2021-11-15
    SandDust
    If you are reporter, you need to come up with reason everyday [笑哭] 
  • robot1234
    2021-11-15
    robot1234
    As more and more countries open their borders, demand for oil will correspondingly go up. The feeble attempt by the Biden Administration to push down the price of oil is unlikely to have any major impact
  • ValuInvestor
    2021-11-15
    ValuInvestor
    Volatile trading
  • JL1Apr
    2021-11-15
    JL1Apr
    Some people are just wasting fuel. The demand can be cut by rationing.
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