Tokyo, Nov. 1 (BNA): Oil prices fell on Monday as China’s release of gasoline and diesel reserves eased concerns about tight global supply, while investors benefited ahead of the Nov. 4 meeting of major crude oil producers that could raise future production targets. .
Brent crude futures were down 29 cents, or 0.4 percent, at $83.43 a barrel by 0351 GMT, after rising six cents on Friday.
US West Texas Intermediate crude futures fell 40 cents, or 0.5%, to $83.17, after rising 76 cents on Friday.
The decline came after China said in a rare official statement that it had released reserves of both types of fuel to increase supply in the market and support price stability in some regions.
“Behind the sale was China’s release of fuel reserves, which reflects Beijing’s intention to stabilize oil prices, just like coal prices,” said Qiuqi Chen, senior analyst at Sunward Trading.
“Investors also took profits ahead of the OPEC+ meeting,” Chen said.
All eyes are on the November 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC), Russia and its allies, collectively called OPEC+, where analysts expect them to stick to a plan to add 400,000 barrels per day of supply in December.
The US Commodity Futures Trading Commission (CFTC) said Friday that money managers cut their net US crude futures contracts and options in the week ending October 26.
Oil prices rose to multi-year highs last week, buoyed by OPEC+’s decision to maintain rather than raise planned production increases due to global supply concerns.
US President Joe Biden on Saturday urged the major energy-producing nations of the Group of Twenty with spare capacity to increase production to ensure a stronger global economic recovery as part of a broad effort to pressure OPEC+ to increase oil supply.
But the Iraqi oil marketing company SOMO said on Saturday that Iraq does not see the need to take any decision to increase its production capacity beyond what was already planned for the OPEC countries.
“Investors are likely to resume buying after the OPEC+ decision was confirmed on Thursday,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
A Reuters poll showed that oil prices are expected to stabilize near $ 80 by the end of the year, as supply shortages and high gas bills encourage a switch to crude oil for use as a fuel for power generation.
Driven by higher oil prices, US energy companies added oil and natural gas rigs for the 15th straight month in October, hitting the highest level since April 2020, Baker Hughes Energy Services said on Friday.
The companies said on Friday that Exxon and Chevron are looking to add drilling rigs in the Permian shale basin after sharply reducing staff and production in the region last year.
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