downtheclownarcadegame| U.S. gasoline reserves sold 1 million barrels: OPEC+ production reduction agreement extended to the end of the year, oil prices fluctuated or rose in the short term

News summary

US sells millions of barrels of gasoline reservesdowntheclownarcadegameCrude oil inventories exceeded expectationsdowntheclownarcadegame, oil prices were pressured and fell. The market expects the OPEC+ production reduction agreement to be extended. It is expected that oil prices will fluctuate in the short term and may rise under the support of demand in the later period.

Newsletter text

[The release of U.S. gasoline reserves is small and the intention to suppress energy prices is obvious]

The U.S. government decided to sell about 1 million barrels of gasoline reserves, while API data showed an unexpected increase in U.S. crude oil inventories, causing oil prices to fall overnight. With the OPEC+ meeting looming, the market expects the production reduction agreement to last until the end of the year. Although oil prices may fluctuate in the short term, as demand grows, oil prices are expected to show an upward trend in the long run.

[Middle East oil-producing countries 'production cuts support markets, Asia-Pacific refiners may increase purchases]

The global spot crude oil market is gradually weakening due to sluggish refining demand and oversupply. However, the Middle East market has been positively affected by voluntary production cuts by regional oil-producing countries, which is in line with the OPEC + agreement. The narrowing price gap between Brent crude and Dubai crude could prompt Asian refiners to buy more crude from the Atlantic Basin, while at the same time, it could also make the cost of Middle Eastern crude relatively higher.