Oil prices fall as US stocks rise, despite OPEC’s slowness to increase supply
NEW YORK / LONDON, Sept. 29 (Reuters) – Oil prices edged down Wednesday after US crude inventories rose more than expected, even as OPEC plans to maintain its deliberate approach to increasing supply in the market despite strong global demand.
U.S. crude inventories rose 4.6 million barrels last week, beating expectations, boosted by a rebound in production as offshore facilities shut down by two hurricanes in the U.S. Gulf have resumed operations.
Brent crude fell 26 cents to $ 78.82 a barrel at 12:25 p.m. ET (4:25 p.m. GMT). On Tuesday, it fell nearly $ 2 after hitting its highest level in nearly three years at $ 80.75.
US oil prices fell 11 cents to $ 75.18.
Oil prices have risen as economies recover from pandemic lockdowns and demand for fuel increases, while some producing countries have experienced supply disruptions.
US stocks of oil, gasoline and distillate rose last week, according to the US Department of Energy. U.S. production has reached 11.1 million barrels per day, which is roughly where it was before Hurricane Ida hit about a month ago.
Production in the United States failed to return to the levels seen at the end of 2019, when production reached nearly 13 million bpd. Shale production has been slow to rebound, squeezing global supply, with OPEC reluctant to increase its quotas.
“Production is coming back but not where it should be,” said Phil Flynn, trader at Price Futures Group.
The Organization of the Petroleum Exporting Countries and its allies, including Russia, known as OPEC +, are expected to stick to an existing deal to add 400,000 barrels per day (bpd) to its November production during November. its meeting next week, sources said, despite the pressure. consumers for more supply. Read more
By its own admission, the demand for oil is expected to increase sharply over the next few years. OPEC warned on Tuesday that the world must continue to invest in generation to avoid a crisis even as it shifts to less polluting forms of energy. Read more
“Although the supply environment has not changed much, with oil prices reaching $ 80 a barrel, there will be increasing pressure for OPEC + countries to increase their production quota,” ANZ Research said in a report. note.
China’s weakening housing market and growing power outages have shaken confidence, as any fallout for the world’s second-largest economy would likely have a ripple effect on oil demand, analysts said. Read more
China is the world’s largest importer of oil and its second largest consumer of fossil fuels after the United States.
Reporting by Aaron Sheldrick; Editing by Jason Neely, Emelia Sithole-Matarise and Marguerita Choy
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