As pressure mounts on OPEC to increase supply, coupled with data from the U.S indicating a hike in crude oil stock, oil price fell on Wednesday.
Brent crude futures declined to $83.34 a barrel at 0950 GMT. U.S. West Texas Intermediate (WTI) crude futures fell to $82.31 a barrel.
Edward Moya, senior analyst at OANDA said “Crude prices are declining after the API reported the sixth straight week of crude oil inventory builds and as the Biden administration exhausts every possible plea to OPEC+ members before tapping their Strategic Petroleum Reserve,”
President Joe Biden, has accused OPEC+ for deliberately reducing production output which has led to a surge in oil price. H e made this comment during a climate submit in Glasgow.
Tomorrow, the 4th November, The Organization of the Petroleum Exporting Countries and its allies will have a thorough review of production policy, with market analysts speculating that the cartel will maintain the 400,000 barrels per day cap.
Stephen Brennock of broker “The producer group is expected to maintain its 400,000 barrels per day monthly supply increases. This, in turn, should preserve this quarter’s supply deficit,”
U.S. crude and distillate fuel stocks rose last week while gasoline declined, according to market sources citing American Petroleum Institute figures on Tuesday.
The United States crude stock increased last week as gasoline stock declined. Crude stock rose by 3.6 million barrels in the space of one week ending at October 29, Gasoline inventories fell by 552,000 barrels and distillate stocks rose by 573,000 barrels.
The rising prices of crude oil has evidently seen supply increase with BP aiming to boost investment in its oil and gas business by adding $500 million dollars to its initial $1 billion capital by 2022.