International oil prices are falling, OPEC is going its own way, and consumer countries may use the ultimate means

On Wednesday (November 3), international oil prices fell, and industry data showed that crude oil inventories in the United States, the world's largest oil consumer, increased significantly. At the same time, there is increasing pressure from the Organization of the Petroleum Exporting Countries (OPEC) to increase supply.

At 14:39 Beijing time, nymex crude oil futures fell 1.48% to $82.67 / barrel; ice Brent crude oil futures fell 1.03% to $83.85 / barrel.

OANDA senior analyst Edward Moya said: "The reason why crude oil prices fell is because api reported a sixth consecutive week of crude oil inventory increases, and the Biden administration has exhausted all possible calls for OPEC+ members, and world leaders have no bottom card to put pressure on OPEC+, leaving only the use of strategic oil reserves to suppress oil prices." ”

opec+ met on Thursday to discuss policy and is expected to reconfirm plans to increase production by 400,000 bpd per month. Speaking at a climate summit in Glasgow, U.S. President Joe Biden blamed the surge in oil and gas prices on OPEC countries' refusal to ramp up production.

Leaders attending the U.N.'s cop26 global climate conference on Tuesday pledged to halt deforestation by 2030 and reduce emissions of the powerful greenhouse gas methane to help mitigate climate change. The U.S. has also unveiled its own domestic proposal to focus on the oil and gas industry, where infrastructure leakage allows methane to escape into the atmosphere.

According to the latest data released by the American Petroleum Association (API), crude oil inventories increased by 3.594 million barrels, gasoline stocks decreased by 552,000 barrels, and distillate inventories increased by 573,000 barrels in the week ended October 29. Official weekly inventory data from the U.S. Energy Information Administration (EIA) will be released later wednesday.

BP said on Tuesday it would ramp up investment in its U.S. onshore shale oil and gas business, from $1 billion this year to $1.5 billion in 2022, suggesting high oil prices are encouraging increased supply elsewhere.

Venezuela's oil exports exceeded 700,000 bpd last month, boosting production and exports, according to documents from the National Petroleum Company of Venezuela (PDVSA) and data tracked by Refinit Eikon.

Venezuela's largest oil-producing region has resumed its production and blending capacity in recent weeks after Iran, one of its most important allies, began regularly supplying condensate to Venezuela to dilute excess crude from the Orinoco belt. Iran's supply has eased the impact of U.S. sanctions on Venezuela's oil output.

This article originated from Huitong Network