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Highlights
- Crude oil settled mixed on Tuesday.
- The US crude stocks were anticipated to rise in the fourth consecutive week.
- OPEC and its allies reduced their crude oil demand forecast by 330,000 for the last quarter of 2021.
Crude oil prices settled mixed on Tuesday, as prospects for tight inventories have been balanced by high production forecasts in the coming months and surging fresh cases of coronavirus in Europe. January delivery Brent Crude oil futures last traded at US$82.05 per barrel down 0.40%, whereas January delivery WTI crude oil futures traded 0.54% down at US$79.31 per barrel as of 17 November 2021 at 12:10 PM AEDT.
The US crude stocks were anticipated to rise in the fourth consecutive week while Texas’ Permian basin production was forecasted to attain the production figures of 4.953Mbpd in December.
Easing oil rally
As per the International Energy Agency (IEA), the oil rally is anticipated to take a breath as high crude oil prices may provide an opportunity to enhance production, mainly in the US.
The agency expects Brent crude oil prices to lie around US$71.50 per barrel and US$79.40 in 2021 and 2022 respectively.
Additionally, the OPEC+ had also squeezed the global oil demand in the fourth quarter of 2021 to lie at 330,000 bpd relative to last month’s forecast.
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Rising coronavirus cases | Source: © Yakobchuk | Megapixl.com
Worries about destruction in the demand for crude oil have also been weighted as Europe has again become the center for COVID-19 cases forcing the government to resume lockdowns.
Bottom Line
Crude oil settled mixed on Tuesday as prospects of tight inventories have been balanced by high production forecast. A fresh rise in coronavirus cases in Europe has additionally dampened the oil demand.
