Traders remained attentive to a possible release of crude oil from the US SPR, and surging COVID-19 cases in Europe, which could curb oil demand growth.
Meanwhile, the International Energy Agency forecasts a 1.5 million barrels per day increase in global oil supply in November and December, while investors shrugged off an Energy Information Administration report showing a decline in US crude stocks.
African nations are being hurt by Western countries’ efforts to discourage international oil companies from investing in overseas oil and gas projects, Equatorial Guinea’s Energy Minister Gabriel Obiang Lima told Energy Intelligence.
US shale oil production is likely to rise in December by about 85,000 barrels per day to 8.3 million barrels per day, the biggest month-on-month increase this year, from more rigs and strong per-well yields, the EIA forecast.
China is likely working on releasing crude oil from its SPR via auctions, but the move may not garner refiner interest as domestic demand slows down amid pandemic-related curbs ahead of the Winter Olympics.