21 November 2022 | Other

Oil drops as supply concerns ease

Oil prices are hovering near two-month lows amid easing concerns about fuel supplies. At the same time, fears about crude oil demand in China, as well as rising interest rates, put pressure on oil prices.

As refineries piled up stocks ahead of an EU embargo on Russian oil, Europe's limited crude oil reserves have eased. This factor puts pressure on physical markets for crude oil in the US, Europe, and Africa.

According to EU's energy policy chief, the EU expects the regulation to be completed in time for the introduction of the G7 plan to cap Russian oil prices on Dec. 5.

In a note, RBC Capital analyst Mike Tran said that tight global inventories do not support the surplus of barrels rationale for contango. He added that despite weakness in the North Sea and West African spot markets, there are no signs of distress.

Growth in demand for oil from the world's largest importer remains slow due to COVID-19 restrictions. At the same time, expectations of further interest rates in other countries led to the growth of the US Dollar, which made dollar-denominated goods more expensive for investors.


Company MarketCheese
Period: 06.06.2025 Expectation: 2500 pips
USDJPY soars amid blocking of Trump’s trade duties in court
Today at 09:01 AM 6
Period: 06.06.2025 Expectation: 300 pips
Buying Brent crude up to $68 per barrel
Today at 08:35 AM 9
Period: 04.06.2025 Expectation: 1000 pips
NVIDIA stocks rise amid expectations for release of results for Q1 of 2025
Yesterday at 11:06 AM 54
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 06.06.2025 Expectation: 2000 pips
USDCAD rebound from 1.37 will be short-lived
Yesterday at 09:54 AM 49
Period: 29.05.2025 Expectation: 700 pips
EURUSD depreciates amid US dollar recovery
Yesterday at 07:30 AM 40
Period: 28.05.2025 Expectation: 1200 pips
Tesla's stocks will rise to $346
27 May 2025 71
Go to forecasts