According to the crude oil change rate data on the sixth working day of the new round of oil price adjustments (October 17), is currently expected to raise the oil price by 200 yuan/ton , which is calculated as a decrease in oil price by 0.15-0.17 yuan/liter. According to the current trend of oil price change rate, it is very likely that we will usher in the "12th" oil price increase this year! 1 October 24 (next Monday) 24:00 a new round of price adjustment window will be opened soon.
On Tuesday (October 18), international oil prices rose, supported by supply difficulties. In addition, the US dollar index hit a one-and-a-half low to 111.768, making US dollar-denominated commodity cheaper for non-USD holders, and also helped boost oil prices. But the new U.S. government's expectations of selling reserves limit the room for oil prices to rebound.
Beijing time at 16:22, NYMEX crude oil futures rose 0.41% to US$85.97 per barrel; ICE Brent crude oil futures rose 0.52% to US$92.12 per barrel.
OPEC+ Investors have increased their long positions after agreeing to a significant reduction in production earlier this month. The Biden administration plans to sell its strategic oil reserves before next month's congressional midterm elections to lower fuel prices, people familiar with the matter said on Monday (October 17).
A source said that the president of Biden is expected to announce the statement this week as part of his response to the Russian-Ukrainian war. This time, Biden will sell off the remaining 14 million barrels of oil previously announced. In March this year, the Biden administration announced that it would implement an unprecedented 180 million barrels of oil reserves from May to October.
Another source said the government also negotiated an additional 26 million barrels of oil sales plan authorized by Congress in the 2023 fiscal year starting October 1. The Department of Energy will also release more details of the final repurchase of oil, reflecting the hope of White House to cope with rising oil prices while supporting domestic drillers.
Rising retail gasoline prices helped push inflation to its highest levels in decades, with Biden and his fellow Democratic Party at risk ahead of the November 8 midterm elections, who are seeking to maintain control of Congress.
Biden said last week that gasoline prices were too high. He will make more anti-inflation-related remarks this week. Deputy Energy Minister David Turk also said last week that the government can use the Strategic Oil Reserve (SPR) as needed in the coming weeks and months to stabilize the oil.
U.S. Energy Information Administration (EIA) released its capacity report on Monday (October 17), showing that the largest shale oil production location in the United States - located in the Permian Basin of Texas and New Mexico - is expected to increase production by about 50,000 barrels per day in November, reaching a record 5.453 million barrels per day. Crude oil production in major shale oil producers in the United States is expected to increase by about 104,000 barrels per day to 9.105,000 barrels per day, the highest since March 2020.
