Oil tumbles on concerns of surplus supply in Q1, new variant

Oil tumbles on concerns of surplus supply in Q1, new variant

26/11/2021 7:00:00 AM

Oil tumbles on concerns of surplus supply in Q1, new variant

SINGAPORE :Oil prices slid more than 2per cent on Friday on concerns that a global supply surplus could swell in the first quarter following a U.S.-led coordinated release of crude reserves among major consumers and as a new COVID-19 variant spooked investors.Brent crude futures extended declines for a third

SINGAPORE :Oil prices slid more than 2per cent on Friday on concerns that a global supply surplus could swell in the first quarter following a U.S.-led coordinated release of crude reserves among major consumers and as a new COVID-19 variant spooked investors.

Brent crude futures extended declines for a third session, falling US$1.69, or 2.1per cent, to US$80.53 a barrel by 0327 GMT. U.S. West Texas Intermediate (WTI) crude was down US$2.04, or 2.6per cent, at US$76.35 a barrel. There was no settlement for WTI on Thursday because of the Thanksgiving holiday.

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- 2.2% not really a 'tumble' with all the rhetoric that's flying around desperately trying to get a 10% plus correction..

Oil skids on concerns of rising surplus in Q1SINGAPORE : Oil prices slid more than 1per cent on Friday on concerns that a global supply surplus could swell in the first quarter following a coordinated release of crude reserves among major consumers, led by the United States.Brent crude futures extended declines for a third session, falling 96 cents,

China 'has the upper hand' as US asks Beijing to release oil reserves: Global TimesSHANGHAI: The United States is \u0022turning to China for help\u0022 to cool inflation by releasing some of its oil reserves, the state-backed Global Times said in an editorial on Wednesday (Nov 24), adding that the move will benefit everyone but China \u0022has the upper hand\u0022. Washington has asked some of the world\u0027s l

Japan to release a few hundred thousand kilolitres of oil from reserveTOKYO : Japan will release a few hundred thousand kilolitres of oil from its national reserve, but the timing of the sale has not been made, the country's industry minister, Koichi Hagiuda, told reporters on Wednesday. Japan's Prime Minister Fumio Kishida said earlier that his government would release so Wow

China says it will release oil reserves according to its needsBEIJING : China will release crude oil from its reserves according to its needs, a foreign ministry spokesman said on Wednesday, adding that the country was in close communication with oil-producing and oil-consuming countries.The United States said on Tuesday that it will release millions of barrels of o

Oil skids on concerns of rising surplus in Q1SINGAPORE : Oil prices slid more than 1per cent on Friday on concerns that a global supply surplus could swell in the first quarter following a coordinated release of crude reserves among major consumers, led by the United States.Brent crude futures extended declines for a third session, falling 96 cents,

Stocks slip, havens rally as new COVID-19 variant spooks investorsSYDNEY : Stocks fell and headed for their largest weekly drop in nearly two months on Friday, while safe haven assets such as bonds and the yen rallied as a new virus variant added to swirling concerns about future growth and higher U.S. interest rates.The variant, detected by scientists in South Africa,

LinkedIn SINGAPORE :Oil prices slid more than 2per cent on Friday on concerns that a global supply surplus could swell in the first quarter following a U.S.-led coordinated release of crude reserves among major consumers and as a new COVID-19 variant spooked investors. Brent crude futures extended declines for a third session, falling US$1.69, or 2.1per cent, to US$80.53 a barrel by 0327 GMT. U.S. West Texas Intermediate (WTI) crude was down US$2.04, or 2.6per cent, at US$76.35 a barrel. There was no settlement for WTI on Thursday because of the Thanksgiving holiday. Oil prices likely dropped in tandem with wider financial markets on concerns the new variant would hit demand by limiting movements again, while market participation has fallen due to the U.S. holidays, CMC Markets analyst Kelvin Wong said. U.S. President Joe Biden's administration announced plans on Tuesday to release millions of barrels of oil from strategic reserves in coordination with other large consuming nations, including China, India and Japan, to try to cool prices. Such a release is likely to swell supplies in coming months, an OPEC source said, according to the findings of a panel of experts that advises ministers of the Organization of the Petroleum Exporting Countries (OPEC). The Economic Commission Board (ECB) expects a 400,000 barrel-per-day (bpd) surplus in December, expanding to 2.3 million bpd in January and 3.7 million bpd in February if consumer nations go ahead with the release, the OPEC source said. Forecasts of rising surplus oil clouds the outlook of the meeting between OPEC and its allies, a group known as OPEC+, on Dec. 2 to decide on immediate production. The group is to decide whether it will continue raising output by 400,000 bpd in January. Still, the benchmark contracts are set to post their first weekly gain in nearly a month as the overall volume of the crude reserve release - estimated at 70 million to 80 million barrels - was smaller than market participants expected. "Since the volume is small, I think it is aimed at easing tightness in supply, rather than having a big impact on oil markets," Tsutomu Sugimori, president of the Petroleum Association of Japan (PAJ), told reporters late on Thursday. Next Monday, world powers and Iran will resume negotiations to revive a 2015 nuclear deal that could lead to the lifting of U.S. sanctions on Iranian oil exports. However, the failure of Iran and the International Atomic Energy Agency to reach even a modest agreement on monitoring of Tehran's nuclear facilities this week bodes poorly for next week's talks, Eurasia analyst Henry Rome said "That Iran did not do so, and instead took a hard line with the IAEA, is another negative sign about its interest in reviving the 2015 nuclear agreement," he said in a Nov. 24 note. (Editing by Christopher Cushing and Jacqueline Wong) Source: Reuters