Original title: international oil prices are facing technical adjustment, but bulls still have good reasons to hold positions.
On Wednesday (October 6), international oil prices fell from multi-year highs and faced technical adjustments after rising for many days in a row. But investors are worried about global energy supplies, and the crude oil market still faces signs of tight supply.
Crude oil futures fell 0.28% to $78.70 per barrel, while ICE Brent futures fell 0.25 per cent to $82.35 per barrel.
The two cities refreshed their highs of $79.78 / barrel since November 10, 2014 and $83.47 / barrel since October 10, 2018, respectively. The two cities have risen for four and five days in a row, respectively.
The Organization of Petroleum Exporting countries and Russian-led partners said earlier this week that they would stick to the existing agreement to increase oil production by 400000 barrels a day per month, rather than further stepping up efforts to increase production.
Oil prices have soared more than 50 per cent this year, adding to inflationary pressures that major crude oil consumers such as the US and India fear could hamper the global economic recovery from the COVID-19 pandemic.
But at the end of last month, OPEC+ joint technologyThe committee (JTC) said it expected a supply shortage of 1.1 million b / d this year, but next year it could turn into a glut of 1.4 million b / d.
Sources said shortly before the talks at the beginning of the week that despite the pressure to increase production, OPEC+ was worried that the fourth wave of COVID-19 infection in the world could hit the recovery of demand.
ANZ said in a report: "crude oil increased as investors worried that the energy crisis pushed up demand and the market was tight. Given the global energy shortage, OPEC+ growth was much lower than the market had expected. Not surprisingly, there is speculation that if demand continues to surge, OPEC will be forced to take action before the next scheduled meeting. "
Desmond Tjiang, chief information officer for Conning Asia Pacific, said on Tuesday that the transition to green energy would take longer than expected, but that if the time frame was forced to shorten, commodity prices would rise further.
Arabian Light, Saudi Arabia's flagship oil product, cut its official OSP price to Asia in November above the average price of Oman / Dubai by $1.30 a barrel, Aramco, the Saudi state-owned oil company, said on Tuesday. The official price for November in northwestern Europe was $2.40 per barrel compared with Brent crude, and the official price for November in the US was $1.25 a barrel higher than the Argus Acid crude Index (ASCI).
Inventory data from the United States, the world's largest oil consumer, also show signs of a slowdown in fuel demand. According to the latest data released by the American Petroleum Association (API), crude oil stocks unexpectedly increased by 951000 barrels in the week ended October 1, with an expected decrease of 300000 barrels; refined oil stocks unexpectedly increased by 345000 barrels and expected to decline by 750000 barrels; gasoline stocks surged by 3.68 million barrels, an increase of far more than expected of 150000 barrels.