November 1, 2021

These Are The Factors That Affect Oil Trading At The Beginning Of The Week

 Oil prices moved calmly at the start of trading earlier in the week after posting their first decline last week, with market focus now focused on the OPEC+ meeting on Thursday.

Entering the European session, Brent crude futures traded slightly lower at $ 83.45 a barrel. while US WTI trading declined to around $ 83.17 a barrel.

Black commodity trade came under pressure after China reportedly released reserves of both fuels to boost market supply and support price stability in some provinces.

The OPEC+ meeting this week will be the main focus of the market which is expected to maintain their plan to add 400,000 barrels a day of production in December.

Accordingly, the current decline in oil prices may also be related to oil investors wanting to take profits before the meeting takes place.

Earlier over the weekend, U.S. President Joe Biden criticized Saudi Arabia and Russia for their refusal to increase production despite rising oil prices following supply constraints.

The US and India have previously urged major oil-producing countries to increase production to stabilize oil markets, but OPEC+ has refused because it is still concerned about the Covid-19 threat that could hurt fuel demand.