OPEC +: Releasing stocks will inflate oil surplus in 2022

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The United States is trying to persuade Russia to increase oil production in a bid to cut world prices, the Interfax news agency reported on Thursday, citing the Russian Foreign Ministry.

The White House announced on Tuesday that the US will release 50 million barrels of crude oil from its strategic reserves in order to help reduce oil prices.

China, the world’s largest importer of crude, has not pledged whether to release oil from its reserves. On Wednesday, Beijing said it would proceed with a coordinated release based on its own needs, while on Thursday there was no further comment on the matter.

A source from OPEC + told Reuters that the agency expects the release of oil from the reserves of major consumer countries led by the US will increase the market surplus by 1.1 million barrels per day.

The Governing Council of the Economic Commission (ECB), OPEC’s economic and technical think tank, met this week and assessed that the The oil market will find a surplus of 400,000 barrels per day in December, with the surplus expanding to 2.3 million barrels in January and 3.7 million in February, if the consuming countries release stocks.

OPEC + has resisted repeated calls by President Joe Biden’s government to speed up production, which will reach 3.8 million barrels per day by the end of December.

It is noted that Goldman Sachs estimated the total size of the release at 70 million-80 million barrels, less than the world’s consumption per day, describing it as a “drop in the ocean”.

Some market analysts, including JP Morgan, have suggested that OPEC + could halt production increases following the release of stocks by major consumers.

Today, press oil Brent is down 7 cents at $ 82.18 a barrel after the small losses recorded on Wednesday. The West Texas Intermediate loses 19 cents or 0.2% to $ 78.20 a barrel, expanding yesterday’s losses by 11 cents.

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