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Oil Up, With Focus Squarely on Supply

Published 11/07/2021, 11:56 PM
Updated 11/07/2021, 11:58 PM
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By Gina Lee

Investing.com – Oil was up Monday morning in Asia, with supply the center of investors’ focus as Saudi Arabian state-owned oil producer Saudi Aramco (SE:2222) raised the official selling price for its crude.

Brent oil futures rose 1.04% to $83.60 by 12:55 AM ET (4:55 AM GMT) and WTI futures jumped 1.21% to $82.25.

Aramco on Friday raised its December official selling price to Asia for its Arab light crude to $2.70 a barrel versus Oman/Dubai crude, up $1.40 from November.

The producer’s move suggests "demand remains strong" after the Organization of the Petroleum Exporting Countries and allies (OPEC+) stuck to its plan to raise oil output by 400,000 barrels per day from December when it met last week, ANZ Research said in a note.

U.S. President Joe Biden’s administration will look at U.S. crude oil supply data from the American Petroleum Institute and the Energy Information Administration during the week, U.S. Energy Secretary Jennifer Granholm said on Sunday.

Oil’s recent rallies to seven-year highs alarmed Biden, who called for OPEC+ to increase supply. However, OPEC+ is unlikely to change its stance, and Aramco’s move is also a signal that Saudi Arabia will continue to resist U.S. pressure to pump faster, said Mike Muller, the head of Asia for Vitol.

In Asia Pacific, China's oil imports fell in October to the lowest level in three years. State-owned refiners were restricted from purchases due to higher prices, while independent refiners faced limited quotas for importing crude.

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