Crude oil hits six-week low on recuperated supply concerns

2 min read | November 18, 2021 01:09 PM AEDT | By Arpit Verma

Crude oil hits six-week low on recuperated supply concerns — Image source: © Artemegorov | Megapixl.com

The swift rise in demand

The global oil market has been focused on the swift rise in demand against a slower increase in supply from the OPEC+, along with reluctance from big shale players of the US to overspend on drilling.

Oil rig

Oil rig | Source: © Tebnad | Megapixl.com

However, both the OPEC and IEA in the recent weeks stated that more supply could come in the next several months. OPEC along with its allies are increasing the output gradually by 400,000bpd every month to maintain the balance between demand and supply.

The US on the other hand has considered announcing an emergency release of crude oil from its strategic petroleum reserves, containing more than 600 million barrels of oil.

Apart from this, a new wave of COVID-19 cases in Europe has forced the government to reimpose restrictions. Australia has ordered a lockdown on unvaccinated people.

Bottom Line

Crude oil prices are under pressure on the back of rising coronavirus cases in Europe which could drag the oil demand and oil oversupply concerns in the coming months.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.