Crude oil prices fell this morning, pressured by higher supply expectations and lower demand.
Brent crude fell 43 cents, or 0.5%, to $81.56 a barrel.
WTI crude fell 58 cents, or 0.7%, at $79.11 a barrel.
Both markets have fallen in the last three weeks. They have been affected by the strong dollar and fears that the United States may release oil from strategic petroleum reserves to lower prices.
U.S. energy companies added 6 oil and gas rigs this week and now stand at a total of 556 rigs which is the highest level since April 2020. This can be seen as a preliminary indicator of future production. As crude oil prices rose to a seven-year high, this prompted some drillers to return to the wells.
Meanwhile, OPEC lowers its forecast for global oil demand in the fourth quarter by 330,000 barrels per day. High energy prices are hampering economic recovery following the COVID-19 outbreak.
Russia’s Rosneft, the world’s second-largest oil company, is warning of a “Supercycle” in the global energy market that could drive oil prices even higher as demand outstrips supply.
The Spot Market is Open
Monday, November 15, 2021