Oil prices drop amid US demands to increase production: Energy market wrap

Oil prices drop amid US demands to increase production: Energy market wrap
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Updated 03 November 2021

Oil prices drop amid US demands to increase production: Energy market wrap

Oil prices drop amid US demands to increase production: Energy market wrap

RIYADH: The Organization of the Petroleum Exporting Countries and its allies called OPEC+ will meet on Nov. 4 amid pressure from consumer countries to increase oil production. The US is at the forefront with the White House blaming OPEC+ refusal to pump more oil responsible for the hike in oil and gas prices.

OPEC+ is expected to stick to its plan for a gradual monthly production increase of 400,000 barrels per day. Brent fell by $2.24 a barrel, or 2.6 percent, to $82.48 at 17:55 Riyadh time.

US crude down $2.59, or 3.1 percent, to $81.32 a barrel.

Gas market

Algerian Energy Minister Mohamed Arkab said on Tuesday Algeria seeks to increase its share of the European gas market to more than 30 percent, Reuters reported citing state news agency APS.

Algeria has decided not to renew the contract for the Maghreb-Europe pipeline that links it to Spain through Morocco, which expired on Sunday night.

It also announced the cessation of gas supplies to Morocco, almost two months after cutting diplomatic ties with the kingdom.

Carbon neutrality

South Korean President Moon Jae-in met with Hungary’s president on Wednesday in Budapest, where the two leaders committed to achieving carbon neutrality in their countries by 2050.

Hungarian president said: “We both agreed that our countries will be carbon neutral by 2050, and we both think that climate neutrality cannot be achieved without nuclear energy.”

EIA
US Energy Information Administration data showed today the US crude oil increased by 3.3 million barrels in the week ending Oct. 29, at 434.1 million barrel. US crude oil is about 6 percent below the five-year average for this time of year.

Total commercial stocks increased by 600,000 barrels.

Gasoline decreased by 1.5 million barrels last week and is about 3 percent below the five-year average for this time of year.

Propane rose by 400,000 barrels last week and is about 14 percent below the five-year average for this time of year.

Coal

After declining for 10 consecutive days, China’s thermal coal futures rebounded nearly 9 percent on Wednesday.

The Asian Development Bank announced in the COP26 climate conference in Glasgow, a plan to speed the closure of coal-fired power plants in Indonesia and the Philippines to lower the biggest source of carbon emissions, citing Reuters.