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OPEC + hopes of delaying supply growth compensate demand concerns

by Bunkerist
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Oil prices are mixed, with reports that OPEC and its allies will delay the increase in oil production, despite the more than expected increase in US crude oil stocks and weak retail sales of processed oil products.

Brent crude futures for January LCOc1 rose 3 cents, or 0.1%, to $43.78 a barrel by 0430 GMT, while West Texas Intermediate crude for December CLc1 eased 3 cents, or 0.1%, to $41.40 a barrel.

According to the data, US crude inventories are said to have increased by 4.2 million barrels last week, well above analysts’ expectations of 1.7 million barrels.

US retail sales rose less than expected in October, raising concerns about poor US consumption in light of the resurgence of COVID-19. Millions of unemployed Americans lost the financial support of the government.

Saudi Arabia has called on OPEC + allies, including Russia, to be flexible in responding to oil market needs, for a tighter production policy in 2021 to combat weaker energy demand in a new wave of COVID-19 outbreak.

OPEC and its allies are revising their 2021 oil demand scenarios for a tighter supply policy next year, and common idea emerges demand is weaker than expected.

OPEC + held a ministerial committee meeting on Tuesday, which did not make formal recommendations. The group will hold a ministerial meeting on 30 November and 1 December to discuss the policy.

Sources said earlier this week that OPEC + members tended to postpone a pre-agreed plan to increase production by 2 million barrels per day (bpd) or 2% of global demand in January.

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