Breaking News
LAST CHANCE for Cyber Monday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil bounces around, settles up despite strong dollar, near $83/barrel

CommoditiesNov 11, 2021 09:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford

(Corrects closing prices and price gains for Brent and WTI in paragraph 2)

By Laura Sanicola

(Reuters) -Oil prices settled slightly higher on Thursday, as the market grappled with a stronger U.S. dollar along with concern over increasing U.S. inflation, and after OPEC cut its 2021 oil demand forecast due to high prices.

Brent crude futures settled up 23 cents at $82.87 a barrel after falling during the session to $81.66. U.S. West Texas Intermediate (WTI) futures were up 25 cents to $81.59, bouncing off the session low of $80.20.

The energy complex traded higher toward the end of the session on confidence that post-pandemic demand would strengthen further in the coming months.

"Fresh highs lay ahead as the ingredients needed to place a top in this market remain elusive, namely global oil demand exceeding new production," said Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois.

However, the rate at which demand returns may be dampened by higher energy prices according to the Organization of the Petroleum Exporting Countries (OPEC). The cartel said in a monthly report it expects oil demand to average 99.49 million barrels per day (bpd) in the fourth quarter of 2021, down 330,000 bpd from last month's forecast.

"A slowdown in the pace of recovery in the fourth quarter of 2021 is now assumed due to elevated energy prices," OPEC said in the report, also citing slow demand in China and India.

On Wednesday, U.S. data showed consumer price inflation rose in October at an annual rate of by 6.2%, the fastest in 30 years, driven largely by steeper energy prices. Expectations that the data would prompt U.S. rate hikes pushed the dollar higher and sent Brent and WTI crude down by 2.5% and 3.3%, respectively.

On Thursday, the dollar rose to almost 16-month highs against the euro and other currencies due to bets on interest rate hikes.

OPEC sees world consumption surpassing the 100 million bpd mark in the third quarter of 2022, three months later than forecast last month. The producer group has cited the uncertain path for demand as a primary reason why it will not increase supply to satisfy calls for more crude from the United States.

Brent crude has gained more than 60% this year and hit a three-year high of $86.70 on Oct. 25. However, oil prices appear to be consolidating below $85 a barrel, Norbert Rucker, head of economics at Julius Baer, said in a note.

"We could be looking at early signs of a fundamental transition towards an easing market, not least as oil demand should only grow gradually going forward with the pick-up in U.S. shale and petro-nation supply."

Oil bounces around, settles up despite strong dollar, near $83/barrel
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
taylor jason
taylor jason Nov 11, 2021 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol biden administration wants to crack down on manipulation that keeps oil prices high. the only manipulation is their interference in the industry. if you want lower prices, give us producers the tools they need to pump away.
Glenn Amden
Glenn Amden Nov 11, 2021 6:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oli prise Rice ? US Crude is down 0,5% at this moment, think this this latest news needs update every 5 minut to keep track on this market we have right now :-)
Glenn Amden
Glenn Amden Nov 11, 2021 6:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oli prise Rice ? US Crude is down 0,5% at this moment, think this this latest news needs update every 5 minut to keep track on this market we have right now :-)
Val Lange
Val Lange Nov 11, 2021 5:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil is the rocket on lunch, the more you print the higher it will fly.
ramesh chand duhoon
ramesh chand duhoon Nov 11, 2021 5:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's just a gamble. abruptly actioned!
Michael Angelo
Michael Angelo Nov 11, 2021 1:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I Like how govts (all) try to talk about manipulation when things go south, cannot control them or there actions are the main culprit (or all together). Manipulation always existed and will exist in free market, is a matter of big pockets. But is a perfect excuse for pointing fingers to.
ramesh chand duhoon
ramesh chand duhoon Nov 11, 2021 1:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
an ambiguous situation is manupulated. it's harmful for investors.
William Smith
William Smith Nov 10, 2021 11:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Increasing productivity would be much much smarter, but Biden pit the brakes on that with several early executive orders.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email