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Commodities
1 Nov 2021
Oil Falls as China Releases Fuel Reserves ahead of OPEC Meeting
The Index Today
Oil prices went down on Monday after China released its diesel and gasoline reserves which helped ease tensions regarding global supply. Investors managed to profit just ahead of the November 4th OPEC meeting which will confirm the future production levels.
Brent crude futures fell by 0.4% to $83.43 per barrel whereas U.S West Texas Intermediate WTI crude futures dropped 0.5% to $83.17.
The fall in oil prices came after China released it official statement regarding fuel reserves and how it can support the current global supply and demand. Chief analyst Chiyoki Chen said, “Behind the selling was China’s release of fuels reserves, which reflected Beijing’s intention to stabilize oil prices, just like coal prices. Also investors took profits ahead of an OPEC meeting.”
On Monday, President Joe Biden asked leading energy producing nation in the G20 to increase capacity and production of fuel to help keep up with global demand and ensure economic recovery. This request came as a part of an effort to help pressure OPEC for more oil supplies.
©Photo: Bloomberg
