Oil slips after API data
Industry data showed a significant gain in crude oil and distillate stocks in the United States, the world’s top oil user. Hence, oil prices fell on Wednesday. OPEC was under pressure to increase supplies.
Brent crude futures were down $1.03, or 1.2 percent. It was at $83.69 per barrel by 0724 GMT, after hitting a session low of $83.27 earlier.
West Texas Intermediate oil futures in the United States lost $1.30, or 1.6 percent. It dropped to $82.61 a barrel after hitting a low of $82.26 earlier in the day. Crude prices are falling after the API announced a sixth consecutive week of natural oil inventory growth. Meanwhile the Biden administration exhausts all potential pleadings to OPEC+ nations before drawing on their Strategic Petroleum Reserve.
World leaders are out of cards when it comes to putting pressure on OPEC+. Hence, any dip that results from tapping strategic reserves from China or the United States is likely to be accepted. Speaking at a climate summit in Glasgow, President Joe Biden blamed the increase in oil and gas costs on OPEC nations’ refusal to pump more crude.
The Organization of Petroleum Exporting Countries and Their Allies meets on Thursday to discuss its strategy.
According to market sources citing API numbers on Tuesday, crude and distillate fuel supplies in the United States increased last week while gasoline stocks fell.
Crude stockpiles increased by 3.6 million barrels in the week ending Oct. 29. Gasoline stockpiles declined by 552,000 barrels. Distillate stocks rose by 573,000 barrels, according to sources who spoke on the condition of anonymity. Reuters questioned analysts who predicted crude oil inventories to climb last week.
Data from the United States Energy Information Administration, the Department of Energy’s statistical arm, will be provided later on Wednesday.
In an indication that high prices are driving additional supply elsewhere, B.P. announced on Tuesday. It will increase its onshore U.S. shale oil and gas business investments to $1.5 billion in 2022. The number is going up from $1 billion this year.
The U.S. says oil, gas sales damage climate
According to federal records, the Biden administration intends to sell oil and gas leases on vast swaths of public land in the United States West, despite the Interior Department’s finding that doing so might cost society billions of dollars in climate change implications.
Last week, administration officials said that government authorities would examine greenhouse gas emissions from fossil fuels mined from government-owned properties across the United States for the first time.
These fuels account for around 20% of all energy-related emissions in the United States. This made them a prime target for climate campaigners seeking to ban leasing. President Joe Biden campaigned on promises to ban new drilling on public lands.
Officials from the Interior Department’s Bureau of Land Management stated there is little they can do for the time being to prevent the broad climate change implications of burning fuel harvested from the remaining properties. It is due, in part, to officials’ inability to distinguish the significance of emissions from government-owned fuel reserves against other sources, according to recently published records.
The administration’s refusal to mention climate costs as a basis for limiting leases irritates environmental activists and others who have advocated for reducing government fossil fuel sales. They claimed it jeopardized the president’s participation in the United Nations climate summit in Glasgow. Biden and other world leaders vowed on Tuesday to reduce methane emissions, a consequence of drilling.
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