• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 20 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 7 days America should go after China but it should be done in a wise way.
  • 23 hours Even Shell Agrees with Climate Change!
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 3 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 3 days World could get rid of Putin and Russia but nobody is bold enough
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Traders Cautiously Optimistic About Crude

Traders Cautiously Optimistic About Crude

In the forthcoming week, traders…

Oil Prices Set to Rise as Global Stock Refills Ramp Up

Oil Prices Set to Rise as Global Stock Refills Ramp Up

China's increased oil inventory building,…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Set For Third Consecutive Week Of Losses

  • Strong dollar, speculation over SPR release forces crude prices lower
  • On Thursday, OPEC cut its oil demand forecast for 2021, for a second month running
  • Analysts are also warning of the oil market balance tipping into surplus early next year

Oil prices fell early on Friday and were headed for a third consecutive week of losses, as the U.S. dollar strengthened and the market continues to guess whether the Biden Administration will act now to try to bring down high gasoline prices.

As of 9:55 a.m. EST, WTI Crude was trading down 1.21% at $80.60 and Brent Crude had fallen by 0.93% to $82.10.

Oil prices were weighed down by a rise in the U.S. dollar as some investors now see the Fed raising interest rates as early as next year to tame inflation. A stronger greenback makes oil buying more expensive for holders of other currencies.

In addition, market participants are weighing the possibility of the U.S. Administration acting now to seek to reduce the highest gasoline prices in America in seven years, with a release from the Strategic Petroleum Reserve (SPR) cited by analysts as the most likely option.

On Thursday, OPEC cut its oil demand forecast for 2021, for a second month running, acknowledging that “a slowdown in the pace of recovery in 4Q21 is now assumed due to elevated energy prices,” on top of weaker than expected Q3 demand from China and India.

On Thursday, oil prices were supported in part by a shutdown of the giant 535,000-barrel-per-day Johan Sverdrup oilfield offshore Norway after a power outage. Production was fully restored by Friday, the field’s operator Equinor said today.

Analysts are also warning of the oil market balance tipping into surplus early next year.

“Assuming OPEC+ maintains its current production strategy, the implication is that the string of quarterly declines that began in 3Q20 will come to an end in the next quarter. In other words, the oil market is sleepwalking into a supply surplus,” broker PVM Oil said on Friday.

“OPEC and its allies will at the very least need to put a pause on the easing of their supply curbs in the new year. Inaction will result in global oil stocks swelling once again and oil prices making a beeline lower,” analysts at the oil broker noted.

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News