Numerous factors are foreshadowing a decline in oil prices leaving pundits wondering where the market will be heading after this weekend.
Chief among the downward drivers is the resurgence of COVID in Europe and the willingness of European governments’ to use lockdown measures to bring the disease to bay. This comes as prices have climbed steadily from a $19.99 per barrel in April 2020 to $85.99 in October 2021.
Concurrently high gasoline prices have brought pressure from the US government on oil producers and distributors to bring down prices. Among the measures being considered is a release from US strategic reserves.
November’s IEA Oil Market Report also showed US output rising 400,000 barrels per day prompted by higher prices, as well as rises in production from Saudi Arabia and Russia for a combined total of 330,000 barrels per day.
In general the report notes that world supply will increase 1.5 million barrels per day in November.