FX168 Financial Newspaper (North America) -- Oil prices rose on Monday (November 1) as expectations of strong demand and the belief that a major producer group would not launch a production rampage too quickly reversed the supply provided by China's release of fuel reserves. As of press time, U.S. WTI crude futures rose 40 cents, or 0.48 percent, at $83.97 a barrel; Brent futures rose 85 cents, or 1.02 percent, at $84.57 a barrel.
(U.S. WTI Crude Oil Futures Daily Chart, Source: FX168)
Fuel prices rose to multi-year highs with the help of a rebound in post-pandemic demand and the insistence of OPEC+ and Russia-led allies or OPEC+ to gradually increase production by 400,000 bpd per month, despite calls from major consumers for more oil.
U.S. President Joe Biden on Saturday (October 30) urged G20 major energy producers with spare capacity to ramp up production to ensure a stronger global economic recovery as part of a broader effort to pressure OPEC+ to increase supply. OPEC+ is heading for conflict with the United States as more and more members reject President Joe Biden's call for the group to speed up oil production and help lower gasoline prices.
On Monday, Kuwait said the cartel should stick to its plan to gradually increase production because the oil market is well balanced. This follows similar statements in recent days by other key members, such as Iraq, Algeria, Angola and Nigeria.
As oil prices climb to $85 a barrel, pressure on oil consumers is mounting. U.S. gasoline is at a seven-year high of $3.70 a gallon. The United States, India, Japan and other oil-importing countries are launching a campaign to force the group to more quickly ease supply constraints triggered by the pandemic last year.
A Reuters survey on Monday found that OPEC's oil production growth in October was lower than planned growth in agreements with allies, as involuntary shutdowns by some smaller producers offset increased supplies in Saudi Arabia and Iraq. Analysts expect OPEC+ to stick to the 400,000 figure at its Nov. 4 meeting, which Kuwait and Iraqi member states have supported in recent days, saying those numbers are sufficient.
Jim Ritterbusch, president of Ritterbusch and Associates LLC, said: "We believe that if Brent prices return to a new 7-year high, their position will be to maintain the status quo. They will acquiesce to this state. ”
Prices rose despite China's rare official statement saying it had released gasoline and diesel reserves to increase market supply and support price stability in some regions. China's State Grain and Strategic Reserves bureau said on Sunday (October 31) that China had released gasoline and diesel reserves to increase market supply and support price stability in some regions. In a brief statement, the Chinese government said the release of reserves was based on the recent supply and demand of the domestic refined oil market.
A spokesman said earlier this week that China's largest refiners, Sinopec, planned to make full use of domestic refining capacity in November and increase diesel supply by 29 percent from a year earlier to ensure there would be no shortage of stocks at gas stations.
【Advertisement】Scan the code to join the "High Winning Rate Training Camp"
![49% of air crashes occur during the landing phase. This is a landing video taken by 12 captains in the cockpit, feeling the thrilling moment of landing from the perspective of a pilot. Narrow runways in icebergs, heavy fog[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)