Amidst the concern that crude prices are going down, OPEC members are saying that crude is exactly where it should be. Recently, the WTI crude prices went bellow $95 per barrel which according to oil companies is quite dismal and can lead to a slowdown. The major reason is cited that there is a huge stockpile of crude in the U.S.
Weeks ahead of an OPEC meeting a message has been sent to the world that it will be a part of discussion in the meeting to decide whether the group needs to adjust its output target. In his statement Angola’s oil minister Jose Botelho de Vasconcelos told Reuters in Abu Dhabi that he thinks there is no need to tinker prices as the market is stable.
Sharing the same point of view Iraq’s oil minister Abdul Kareem Luaibi said that the market is stable and the price is stable too. The two countries i.e. Iraq and Angola are members of OPEC, the producer group that pumps more than a third of the world’s oil and often determines the prices of crude for the global supply. The meeting is scheduled for 4th December.
Increase in Brent Crude Prices
Though the likely result of negotiations between the U.S. Secretary of State John Kerry and Iranian counterpart were not what they expected, the oil market got positive outlook from it. Kerry’s statement sent positive signals to the oil economy as that would ease sanctions against Iran’s oil exports in exchange for concessions on its nuclear work.
Thanks to his statement whereas the European benchmark gained 1.6 percent, West Texas Intermediate advanced less than Brent even though the country got better-than-expected jobs data. However, the negative impact of this for investors is that it will lead the Federal Reserve to scale back stimulus which according to them may discourage investments.
Reportedly, like WTI, on the London-based ICE Futures Europe exchange, Brent for December settlement gained $1.66 to end the session at $105.12. Nonetheless, there has been immense improvement in the U.S. supplies of crude oil which has gone up 1.58 million barrels to 385.4 million in the week ending Nov. 1.
The Energy Information Administration reported that it is the first time since June 21 that there has been such an increase. On the other hand, output has also gone up to 7.896 million barrels a day in the week ending Oct. 18, which is the highest in 14 years.
To contact the reporter of this story: Jonathan Millet at email@example.com