Crude oil futures rose last night (November 22). This is due to the tendency that OPEC+ could adjust its production plans if the U.S. and its allies drain oil from reserves.
- WTI crude futures were up 81 cents, or 1%, at $76.75 a barrel.
- BRENT crude futures were up 81 cents, or 1%, at $79.70 a barrel.
At the November 4 meeting, OPEC+ agreed to maintain the 400,000 barrels per day increase in oil production in December, but currently many foreign media are reporting that OPEC+ may adjust its oil production plans. This comes after the U.S. and its allies plan to deplete their oil reserves to depress global oil prices.
The United States and its allies are expected to dump a total of 100-120 million barrels of oil. The U.S. plans to drain 45-60 million barrels of oil, China 30 million barrels, India 5 million barrels, Japan 10 million barrels, and South Korea 10 million barrels.
However, even if oil reserves come on the market, this will only affect the market price for a few weeks.
Investors are paying attention to the weekly U.S. oil inventory reports that will be released tomorrow by the U.S. Energy Information Administration (EIA).
The Spot Market is Open
Tuesday, November 23, 2021