Oil prices rose on Monday, which continued the rise in the previous trading day because the efforts of the United States supplemented strategic oil reserve (SPR) provided some support. However, the market’s concerns about the growth of crude oil supply and the growth of fuel demand for next year still exist. As of press time, the price of Brent crude oil futures rose 0.80%to $ 76.45 per barrel, and the price of WTI crude oil futures rose 0.74%to $ 71.76 per barrel.
Last Friday, the two oils of the United States and cloth increased by more than 2%, but fell for the seventh consecutive week. This was the longest week since 2018, because of concerns about the overpopulation of the supply.
The recent weak oil prices have attracted the demand of the United States. The United States has seek up to 3 million barrels of crude oil for SPR delivered in March 2024.
IG analyst Tony Sycamore said in a report: “We know that the Biden government is seeking to supplement SPR in the market, which will provide support.” He added that oil prices are also supported by technical chart indicators.
Although OPEC+promises to reduce production by 2.2 million barrels per day in the first quarter of next year, investors still have a doubt about whether the supply will decline. The output growth of non -OPEC countries is expected to lead to excess supply next year.
RBC Capital Markets predicts that crude oil inventory in the first half of next year will reduce 700,000 barrels per day, but only 140,000 barrels per day will be reduced throughout the year.
RBC stated in a report: “Before the market see clear data points related to voluntary production reduction, the price will maintain volatility and no direction.”
The analyst of the bank added that the reduction of production reduction measures will not be implemented until next month, and the output data at the national level will be announced until January next year. Therefore, before the quantitative data of production reduction is preliminarily clear, the market will experience two turbulent two. A month.
In addition, investors will pay attention to the interest rate policy guidance of five central banks including the Federal Reserve this week, as well as US inflation data to understand the impact of these factors on the global economy and oil demand.