Oil prices fell as China's release of gasoline and diesel stocks alleviated concerns about global supply scarcity, while investors cashed in ahead of a meeting of major crude producers on November 4 that might raise future production targets.
After rising 6 cents on Friday, Brent crude futures fell 46 cents, or 0.6%, to $83.26 a barrel. After rising 76 cents on Friday, U.S. West Texas Intermediate (WTI) crude futures fell 64 cents, or 0.8%, to $82.93. The price drops followed China's announcement that it had released reserves of the two fuels to boost market supply and support price stability in some areas.
OPEC+ will meet on November 4th, with analysts anticipating them to stick to a plan to increase 400,000 bpd of production in December. Last week, oil prices rose to multi-year highs, aided by OPEC+'s decision to maintain its scheduled output increase rather than boost it in response to global supply concerns.
As part of a broader push to pressure OPEC+ to increase oil supply, US President Joe Biden asked major G20 energy producing countries with spare capacity to enhance output to assure a stronger global economic recovery.
However, Iraq's official oil marketing organisation, SOMO, stated that Iraq sees no need to raise its production capacities beyond what is currently planned for OPEC countries.
Kuwait's oil minister, Mohammad Abdulatif al-Fares, said that the Gulf nation supports the plan to raise global oil production that has already been agreed upon by OPEC+. The plan, which calls for a monthly rise of 400,000 bpd, secures enough oil supply to keep the global market balanced, he said.
Oil prices are anticipated to remain near $80 by the end of the year, as tight supplies and rising gas prices stimulate a shift to crude as a power generating fuel.