November 25, 2021

Biden's Action Really Wrong? This is OPEC's answer!

 Black commodities traded steady, after gaining support from OPEC warnings about the release of oil reserves by the world’s major oil consumers.

On Tuesday, US President Joe Biden announced that the country would remove as many as 50 million barrels from the Strategic Petroleum Reserve (EC) in line with some of the world’s other major consumers.

However, OPEC later warned that such action could increase the crude oil surplus projected early next year.

The OPEC advisory group predicts that the surplus in the market will increase by 1.1 million barrels a day in January and February if 66 million barrels are put on the market within two months.

In addition, some OPEC members also said that the release may result in them suspending crude oil production next January.

OPEC and its allies, better known as OPEC+ will meet on December 1 and 2 to discuss and make decisions on monthly crude oil production.

Towards the end of the Asian session, Brent crude futures rose slightly to $ 82.30 a barrel, while US WTI trading hovered at $ 78.35 a barrel.