“The discharge of petrol from reserve stores increases the competitiveness of the leaders in the production in the oil market,” according to ANZ analysts.
On December 1-2, the Organization of Petroleum Exporting Countries, Russia, and their allies, known as “OPEC Plus,” will meet to determine whether to boost output by 400,000 barrels per day in January.
According to sources, OPEC + did not halt oil production growth, ignoring the conclusion of the decision by the United States, Japan, India, and other countries to release emergency oil supplies.
High oil prices have fueled inflationary fears. A coordinated US-led release of state-owned oil reserves, according to Goldman Sachs analysts, could bring 70 to 80 million barrels of petroleum to markets.
The release of 70 million barrels of oil reserves, on the other hand, may cause an oversupply in the market. According to the bank, OPEC + will postpone its planned increase in exports in January, shielding markets from headwinds.
The US Department of Energy has announced the sale of 32 million barrels of strategic oil reserves (SPR) starting in April 2022. It is expected to produce another 18 million barrels in the near future.
Traders are also waiting to see if China will keep its promise to release oil from its stockpiles.
Despite the fact that crude oil stocks increased, analysts noted that gasoline and distillate inventories fell more than expected.
“However, the overall picture is that product demand remains solid, adding to the pressure on an already tightening market,” said Capital Economics economist Kiran Tompkins.