Oil Slips, Investors Look to OPEC+ Response to Crude Release

25 November 2021

    Oil prices fall on Thursday as investors await to see how OPEC+ responds to the emergency crude release by major consuming countries designed to cool the market.


    "The release of oil from strategic reserves ramps up competition for control of the oil market amongst the world's biggest producers. We don't expect OPEC will stand by idly as the market enters a critical period“, ANZ analysts said in a note.


    Investors now await the response of OPEC+, who are scheduled 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 commented. 


    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.


    High oil prices have further added to inflationary concerns. A coordinated release from state oil reserves led by the United States could add around 70 million to 80 million barrels of crude supply to markets, analysts at Goldman Sachs  said. However, ANZ said the release of 70 million barrels of oil reserves could push the market into surplus. 


    The US Department of Energy has launched an auction to sell 32 million barrels of strategic petroleum reserves (SPR) for delivery between late December to April 2022. It plans to release another 18 million barrels soon.

    Traders are also looking out for whether China will follow through on plans to release oil from its reserves.


    Brent crude futures fell 7 cents to $82.18 a barrel at 07.26 GMT, after losing 6 cents on Wednesday. WTI crude futures, in turn, fell 19 cents to $78.20 a barrel, extending an 11-cent loss on Wednesday.

    *The products advertised are only available to clients under Fondex Limited (SDL No: SD037). Trading CFDs involves significant risk of loss.


Cookies on Fondex

The Fondex website uses cookies to optimise user experience.

These cookies fall under the following categories: essential, functional and marketing cookies. Marketing cookies may also include third-party cookies.

Manage Preferences

You can customize your selection of which cookies you want to accept.

  • Essential

    These cookies are necessary for the website to function correctly and cannot be switched off.

  • Functional

    Functional cookies allow the website to remember users' preferences and the choices you make on the website such as username, region, and language.

  • Marketing

    These cookies are used to track visitors across our websites and show you more relevant ads. Marketing cookies also include third-party cookies from partners. For more information relating to data protection & collection please view our Privacy Policy and Cookie Disclosure.


The Company would like to inform you that it will terminate its operations under the "Fondex" brand by 30th of December 2022. If you wish to open a trading account, kindly visit topfx.com.sc