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Oil Continues Its Upward March to OPEC Drumbeat

CommoditiesNov 01, 2021 05:19PM ET
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© Reuters.

By Barani Krishnan

Investing.com - Oil prices continued their upward march on Monday to the drumbeat of OPEC and its allies, who indicated they were in no mood to let the market slide by adding any more barrels than the 400,000 per day they had agreed to in the near future.

“The group is clearly perfectly happy with (existing) price levels,” Craig Erlam, analyst at online trading group OANDA, said as crude prices hovered around $85 per barrel, almost double from where they traded a year ago. “This is clearly a very bullish market.”

U.S. West Texas Intermediate crude settled up 46 cents, or 0.6%, at $84.05 per barrel.

London-traded Brent, the global benchmark for oil, finished the session at $84.71, up 33 cents or 0.4%.

Crude prices initially fell on Monday on release of strategic stockpiles by China to cool domestic energy prices.

But by the close of the session in New York, they were back higher, following the rhythm of most of the 13-member countries and allies in the Organization of the Petroleum Exporting Countries that there should be no production hike than pre-agreed levels.

OPEC+ holds its regular monthly meeting on Thursday. 

While earlier in the year, the OPEC+ meetings served to really address supply-demand issues in the market, the past few have been little more than an opportunity for the cartel to talk up crude prices by stating what traders already knew would be its response to producing countries' demands for more barrels: No.

Thursday’s meeting will likely be as "swift and consistent with the last," said Erlam, adding that he expected world leaders to again be “disappointed with the worsening oil market deficit". Energy experts say the total addition of 2 million barrels planned by OPEC between November and April is akin to a drop in the bucket for a market needing at least a million barrels more each month.

Crude prices got a boost on Monday for another reason: Bank Of America’s call that $120 a barrel might be possible by June 2022.

Oil Continues Its Upward March to OPEC Drumbeat
 

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Comments (6)
William Bailey
William Bailey Nov 01, 2021 8:47PM ET
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Yep! Conspire to produce less and bingo!!
ron king
ron king Nov 01, 2021 8:32PM ET
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just this morning you had and article saying it was falling...so which is the made up story going to be?
Barani Krishnan
Barani Krishnan Nov 01, 2021 8:32PM ET
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This is the second time you've come back with a nonsensical remark, and I hope there won't be a third. I did not with anything this morning. Got it?
Alan Rice
Alan Rice Nov 01, 2021 5:41PM ET
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It is re-assuring to see World markets at least make an attempt to do what is best for The Planet, for a change. A kudo to OPEC+ !
William Bailey
William Bailey Nov 01, 2021 5:41PM ET
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Its to hurt the economy of a democrat
Ernest Wong CA
Ernest Wong CA Nov 01, 2021 3:59PM ET
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yep just TP @ $85.30 - $85.50 this morning, reduced by $40k from last week's $180k Longs; Brent now $85.35, next TP 86.00
Barani Krishnan
Barani Krishnan Nov 01, 2021 3:59PM ET
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Ernest, all well? :)
Ernest Wong CA
Ernest Wong CA Nov 01, 2021 3:59PM ET
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Barani Krishnan  yes man, all good thanks! :) Although Goldman predicts price over $90, and BOA for $120 next year, I strongly doubt that. By all means I have all Longs to accommodate these target profits. Just let you know, as a friend :) Pls keep up with all these good articles/analyses :)
Jack Peterson
Jack Peterson Nov 01, 2021 3:39PM ET
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Unfortunately, this run isn’t going to end well….
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Edward Chong
Edward Chong Nov 01, 2021 3:39PM ET
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oh it never ends well. its just that this round the bulls will last longer.
Barani Krishnan
Barani Krishnan Nov 01, 2021 3:39PM ET
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Edward Chong  Yes. It's just a longer rope.
Devendra Kumar Parora
Devendra Kumar Parora Nov 01, 2021 3:39PM ET
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For india they motivting us to search alternative option of fuel..
Barani Krishnan
Barani Krishnan Nov 01, 2021 3:39PM ET
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Devendra Kumar Parora  Unfortunately, there aren't too many options. The only one involves lifting Iranian sanctions, which might be Biden's last gambit. That could bring prices down by $10 or so. The other thing, of course, would be an unusually warm winter in the northern hemisphere. The trade-off to that one would be higher than usual US gasoline consumption in the winter, coz if there's one thing the Americans love it's jumping into their cars; a warmer winter will mean a chance to do weekend road trips at a most unexpected time of the year.
Gail Goodman
Gail Goodman Nov 01, 2021 3:39PM ET
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Barani Krishnan  Thanks.  Any time frame on how long that rope is?
aadan yere
aadan yere Nov 01, 2021 3:37PM ET
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aadan yere
 
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