Reuters, October 7, 2012 - On Tuesday, oil prices went down a little because investors were thinking that there might be too much oil on t...
.jpg "Oil stable after OPEC+ output rise was smaller than predicted.")
At 13:21 GMT, Brent oil futures were down 39 cents, or 0.6%, to $65.08 a barrel.
West Texas Intermediate crude oil in the U.S. fell 38 cents, or 0.62%, to $61.31. The price of oil is staying the same, and the market is waiting to see if higher oil stocks on water will lead to higher oil stocks in the OECD. UBS analyst Giovanni Staunovo said that early figures from India showed that there was strong demand for oil in September. OPEC+, which is made up of the Organisation of the Petroleum Exporting Countries, Russia, and some smaller producers, agreed to raise oil production by 137,000 barrels per day (bpd) starting in November. This caused both contracts to settle more than 1% higher than the previous session.
The move was different from what the market thought would happen, which was a more aggressive rise. This shows that the group is still being cautious, as ING analysts say they expect a world supply surplus in both the fourth quarter and next year.
The Petroleum Planning and Analysis Cell (PPAC) of the oil ministry says that India's fuel consumption rose by 7% year over year in September. On the supply side, JP Morgan said that the amount of oil in the world's stores, which includes crude oil stored in water, has gone up every week in September, by 123 million barrels.
For its part, China is quickly constructing oil reserve sites as part of a plan to increase stocks, as shown by public data, traders, and experts in the field.
Prices have stayed low because of geopolitical factors. The conflict between Russia and Ukraine has hurt energy assets and made it unclear how much Russian crude will be available.
After a drone attack and fire on October 4, Russia's Kirishi oil plant shut down its most productive distillation unit. Two industry sources said on Monday that the recovery process is likely to take about a month.
The move was different from what the market thought would happen, which was a more aggressive rise. This shows that the group is still being cautious, as ING analysts say they expect a world supply surplus in both the fourth quarter and next year.
The Petroleum Planning and Analysis Cell (PPAC) of the oil ministry says that India's fuel consumption rose by 7% year over year in September. On the supply side, JP Morgan said that the amount of oil in the world's stores, which includes crude oil stored in water, has gone up every week in September, by 123 million barrels.
For its part, China is quickly constructing oil reserve sites as part of a plan to increase stocks, as shown by public data, traders, and experts in the field.
Prices have stayed low because of geopolitical factors. The conflict between Russia and Ukraine has hurt energy assets and made it unclear how much Russian crude will be available.
After a drone attack and fire on October 4, Russia's Kirishi oil plant shut down its most productive distillation unit. Two industry sources said on Monday that the recovery process is likely to take about a month.