Focus on OPEC+ response to US-led crude release

Oil prices edged down on Thursday with investors waiting to see how major producers respond to the emergency crude release by major consuming countries designed to cool the market, even as data pointed to healthy US fuel demand.

Brent crude futures slipped 7 cents to $82.18 a barrel at 0726 GMT, after losing 6 cents on Wednesday.

US West Texas Intermediate (WTI) crude futures fell 19 cents, or 0.2 per cent, to $78.20 a barrel, extending an 11-cent loss on Wednesday.

“The release of oil from strategic reserves ramps up competition for control of the oil market amongst the world’s biggest producers,” ANZ analysts said in a note.

“We don’t expect OPEC will stand by idly as the market enters a critical period.”

All eyes are now on the Organization of the Petroleum Exporting Countries, Russia and allies, together called OPEC+, who are due to meet next week to discuss oil demand and supply.

“The bold move from the oil importers has opened the door wide open for OPEC+ to adjust its supply policy downwards at its next (meeting on) 2 December 2021,” Rystad Energy analyst Louise Dickson said in emailed comments.

The group has been adding 400,000 barrels per day of supply since August unwinding record output cuts made last year when pandemic curbs slammed demand.

OPEC+ will meet on Dec. 1-2 to decide whether or not it will raise output by another 400,000 bpd in January.

Three sources told Reuters OPEC+ is not discussing pausing its oil output increases, despite the decision by the United States, Japan, India and others to release emergency oil stocks.