Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Oil Rally Halts as More Output Seen; U.S. Stockpile Data Awaited

CommoditiesNov 16, 2021 03:08PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Barani Krishnan - Oil prices aren’t ready to collapse yet in the same fashion they rose. Yet, new highs aren’t happening in a market seeing steady drops or slower advances each day, especially after a forecast Tuesday that world output may actually rise in the near-term — something few expected.

The Paris-based International Energy Agency, or IEA, said global production increased by 1.4 million barrels a day last month, and will add as much again over November and December as the U.S. Gulf of Mexico restores supplies halted by the end-August Hurricane Ida. 

American shale drillers also finally seem to be taking advantage of the higher crude prices to bolster drilling. Those extra barrels are coming onstream as the OPEC+ alliance continues to revive exports it halted during the pandemic, the agency said. Separately, the number of rigs actively drilling for oil in the United States rose by 60 — from a low of 394 to 454 — over the past 11 weeks.

West Texas Intermediate, the U.S. crude benchmark, settled down 12 cents, or 0.2%, at $80.76 per barrel. WTI had lost 4% over the past three weeks after gaining a net 30% over the previous seven months. The U.S. crude benchmark hit seven-year highs above $85 in mid-October and remains up 64% on the year.

London-traded Brent crude, the global benchmark for oil, settled up 38 cents, or 0.5%, at $82.43. Like WTI, Brent also lost 4% in three previous weeks. The global benchmark scaled a three-year high above $86 last month and remains up 59% for the year.

Tuesday’s mixed close in oil came ahead of a weekly snapshot on U.S. crude, gasoline and distillate stockpiles due from the American Petroleum Institute. The API numbers, released each Tuesday after market settlement at 4:30 PM ET (20:30 GMT), are a precursor to official weekly inventory data due each Wednesday from the EIA, or U.S. Energy Information Administration. 

Analysts tracked by have forecast that U.S. crude inventories rose by 1.4 million barrels for the week ended Nov. 12, adding to the previous week’s gain of 1.0 million.

Gasoline inventories likely dropped by 575,000 barrels, on top of the decline of 1.56 million in the previous week, forecasts showed.

Stockpiles of distillates, which include diesel and heating oil, are expected to have fallen by 1.23 million barrels, after the previous week’s drop of 2.61 million.

Oil rallied with few interruptions between from end-March through mid-October, adding some $20 a barrel, as producer group OPEC and its allies continued to choke the market of supply amid soaring demand for energy from economies rebounding aggressively from the Covid-19 pandemic.

Oil bulls had delighted then in OPEC+’s continuous rebuffing of the administration’s plea for more oil above the miserly 400,000 barrels per day addition offered by the alliance. 

The music for oil longs came to a stop three weeks ago as the Biden administration warned that it will do whatever it takes to stop runaway inflation, particularly from crude prices, from halting U.S. growth. 

The administration’s caution took on an added tone of gravity after the Labor Department reported last week that the U.S. Consumer Price Index, which represents a basket of products ranging from gasoline and health care to groceries and rents, rose 6.2% during the year to October.  It was the fastest growth of the so-called CPI since November 1990, an acceleration driven mostly by pump prices of gasoline at seven-year highs.

Oil Rally Halts as More Output Seen; U.S. Stockpile Data Awaited

Related Articles

Oil heads for sixth weekly gain amid supply concerns
Oil heads for sixth weekly gain amid supply concerns By Reuters - Jan 27, 2022

By Yuka Obayashi TOKYO (Reuters) -Oil prices rose on Friday, set for their sixth weekly gain, amid concerns of tight supplies as major producers continue their policy of limited...

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
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'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
Sign up with Email