View of the bulk carrier “Yan Dun Zhao 1” at the Vostochny Container Port on the coast of Nakhodka Bay, near the Russian port city of Nakhodka, August 12, 2022.Reuters/Tatiana Mir/File photo Obtaining license rights
SINGAPORE, Nov 14 (Reuters) – Demand remains strong, an Organization of the Petroleum Exporting Countries (OPEC) report says, adding that a U.S. crackdown on Russian oil exports could disrupt supply. Oil prices edged higher on Tuesday on expectations that market fundamentals are healthy.
Brent crude oil futures rose 30 cents, or 0.36%, to $82.82 a barrel at 0413 GMT. U.S. WTI crude oil futures rose 28 cents, or 0.36%, to $78.54 per barrel.
“Following a significant market decline over the past three weeks, oil has managed to find some support…Fundamentals may not be as bullish as initially thought, but the market could still go into the red is strong and supportive for the rest of the year,” ING analysts said in an email note.
“The surplus seen early next year could even be erased if Saudi Arabia defers further voluntary supply cuts,” they added.
The Organization of the Petroleum Exporting Countries blamed speculators for recent price declines in its monthly report. It also slightly raised its forecast for global oil demand growth in 2023 and kept its forecast for 2024 at a relatively high level.
Last week, oil prices fell to their lowest levels since July on concerns that demand from oil-consuming countries the United States and China could decline. China’s consumer prices fell in October to levels not seen since the coronavirus pandemic, and exports for the month contracted more than expected.
The U.S. Department of Energy plans to buy 1.2 million barrels of oil to help replenish the Strategic Petroleum Reserve after selling its largest stockpile on record last year, potentially boosting demand further.
A U.S. crackdown on Russian oil exports could disrupt supply and push prices further down.
The U.S. Treasury has sent notices to ship management companies seeking information on 100 vessels suspected of violating Western sanctions on Russian oil, which are subject to price caps to limit oil revenues to Russia. This is the largest action taken by the U.S. government since the U.S.
However, analysts at ANZ and ING say talks have resumed to restart an oil pipeline in Iraq, which could be a headwind for the market.
Iraq’s oil minister hopes to reach an agreement with the Kurdistan Regional Government and foreign oil companies to restart oil production from the Kurdistan Region’s oil fields and resume northern oil exports through the Iraq-Turkey pipeline. There is.
Turkey has suspended exports of 450,000 barrels per day (bpd) to the north through the Iraq-Turkey pipeline since March 25, following an arbitration ruling by the International Chamber of Commerce.
Market focuses include the International Energy Agency’s latest monthly oil market report, which will be released later in the day.
U.S. inflation data is also due to be released on Tuesday, and U.S. producer price index statistics are due to be released on Wednesday.
Li said several factors could also support oil prices, including whether the APEC summit improves Sino-US relations and whether China makes further rate cuts to support the economy. .
Report by Emily Chow.Editing: Edwina Gibbs and Stephen Coates
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