CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Oil prices ease as markets await fresh guidance

By Fitri Wulandari

03:28, 17 November 2021

An oil tanker docking in front of storage tanks
An oil tanker docking in front of storage tanks - Photo: Shutterstock

Oil prices retreated on Wednesday as markets are seeking for fresh clues while watching closely for any announcement from the US on its policy to cool gasoline prices.

Brent crude oil futures, the international benchmark, dropped 0.59% at $81.94 per barrel (bbl). West Texas Intermediate fell 0.94% to $80/bbl.

“The oil market continues to lack direction. Participants continue to wait for signals from the US administration on whether they will release oil from the Strategic Petroleum Reserves (SPR),” ING Group said in its note on Wednesday.

Short-term relief

“The hesitation appears to be because the market outlook is more comfortable in 2022, while an SPR release would also only offer short-term relief to the market,” ING added.

In addition, ING noted, there is potential for Organization of Petroleum Exporting Countries (OPEC) and its partners (OPEC+), to counter US’ release of its SPR by delaying their supply increase.

Markets also ignored the International Energy Agency’s monthly oil report released overnight.

What is your sentiment on Oil - Crude?

Vote to see Traders sentiment!
Brent crude price movementBrent crude price movement - Credit:

Oil demand strengthening

The International Energy Agency (IEA) in its November oil report keeps its forecast for oil demand growth unchanged from last month’s report at 5.5 million barrels per day (bpd) for 2021 and 3.4 million bpd in 2022.

Oil - Brent

79.15 Price
-1.620% 1D Chg, %
Long position overnight fee 0.0010%
Short position overnight fee -0.0229%
Overnight fee time 22:00 (UTC)
Spread 0.045

Natural Gas

2.77 Price
-1.140% 1D Chg, %
Long position overnight fee 0.0451%
Short position overnight fee -0.0670%
Overnight fee time 22:00 (UTC)
Spread 0.0050

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040


25.49 Price
+0.890% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee 0.0118%
Overnight fee time 22:00 (UTC)
Spread 0.020

The agency said it maintains its forecast because despite global oil demand is strengthening due to robust gasoline consumption and increasing international travel with more countries reopening their borders, new Covid-19 waves in Europe, weaker industrial activity and higher oil prices will temper gains.

Meanwhile, global oil production is already rising. In October, oil supplies leapt by 1.4 million bpd to 97.7 million bpd with the US post-hurricane recovery accounting for half the increase.

US oil supply

The agency expects an additional boost of 1.5 million bpd in November and December even as OPEC+ disregarded pleas from major consumers to ramp up beyond a monthly allocated 400,000 bpd to cool prices.

“Over this period, the US is now poised to provide the largest increase in supply of any individual country,” IEA said in the report.

IEA raised its forecast for US oil production by 300,000 bpd for the fourth quarter of this year and 200,000 bpd on average in 2022. The US is set to account for 60% of 2022 non-OPEC+ supply gains, now forecast at 1.9 million bpd.

“Even so, the US will not return to pre-Covid rates until the end of 2022,” the agency said.

Read more: Record-high coal production puts price pressure on oil

Markets in this article

Oil - Brent
Brent Oil
79.146 USD
-1.303 -1.620%
Oil - Crude
Crude Oil
74.504 USD
-1.183 -1.560%

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading