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

Oil Up, Investors Await OPEC+ Supply Decision

CommoditiesDec 01, 2021 09:48PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Oil was up Thursday morning in Asia, reversing the previous day’s losses. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) could pause adding supply amid growing concerns about the omicron COVID-19 variant’s risk to economic recovery and fuel demand.

Brent oil futures were up 0.42% to $69.29 by 9:44 PM ET (2:44 AM GMT) and WTI futures rose 0.75% to $66.06.

"Oil prices climbed as some investors anticipate that OPEC+ will decide to maintain the current supply levels in January to cushion any damage on demand from the Omicron spread,” Fujitomi Securities Co. Ltd. analyst Toshitaka Tazawa told Reuters.

OPEC+ will meet later in the day, where it is likely to decide whether to release more oil into the market as per its plan or restrain supply. The cartel has been adding an additional 400,000 barrels per day (bpd) of output to global supply each month since August 2021.

However, omicron’s discovery has introduced uncertainty, with some investors now predicting that OPEC+ could pause these additions to avoid a supply glut.

Omicron is quickly becoming the dominant COVID-19 variant in South Africa less than four weeks after it was first discovered in the country, with the U.S. reporting its first case on Wednesday.

The U.S. could adjust the timing of its planned release of strategic crude oil stockpiles if global energy prices drop substantially, said Deputy Energy Secretary David Turk.

Meanwhile, Wednesday's U.S. crude oil supply from the U.S. Energy Information Administration showed a draw of 910,000 barrels in the week to Nov. 26. Forecasts prepared by Investing.com predicted a 1.237-million-barrel draw, while a 1.017-million build was recorded during the previous week.

Crude oil supply from the American Petroleum Institute released a day earlier, showed a draw of 747,000 barrels.

Oil Up, Investors Await OPEC+ Supply Decision
 

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.
 
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
Continue with Google
or
Sign up with Email