On Wednesday (November 17), international oil prices fell, and US gasoline inventories fell more than expected last week, which may increase the pressure of the Biden administration to release oil from emergency reserves to curb soaring gasoline prices. The outlook for NYMEX crude oil is $76.77.
At 14:15 Beijing time, NYMEX crude oil futures fell 0.95% to US$79.99/barrel; ICE Brent crude oil futures fell 1.01% to US$81.60/barrel.
In order to reduce gasoline prices, US President Biden has been considering releasing oil from the Strategic Petroleum Reserve (SPR). Gasoline prices at California gas stations hit a record high this week, however, members of Congress have mixed views on whether this is necessary.
U.S. House Majority Leader Hoyer said late on Tuesday (November 16) that he disagreed with Senate Majority Leader Schumer’s call on Sunday for the use of the Strategic Petroleum Reserve (SPR) to reduce oil prices, saying that the reserve was meant to reduce oil prices. Fill the gap in crude oil supply in emergency situations.
But even if the United States does not hesitate to use strategic oil reserves, the benefits to American consumers will be small. The release of reserves can only serve as a temporary relief. It is necessary for US shale oil producers or the Organization of the Petroleum Exporting Countries (OPEC) to increase supply to truly and effectively solve the problem.
According to data released by the American Petroleum Institute (API) on Tuesday, gasoline inventories fell by 2.792 million barrels in the week ending November 12, which was much higher than the expected 731,000 barrels. Although crude oil inventories increased by 655,000 barrels, the increase was less than the expected 1.55 million barrels. The official U.S. Energy Information Administration (EIA) weekly inventory report will be released at 23:30 Beijing time on Wednesday.
On the hourly chart, NYMEX crude oil is in a downward wave starting from 84.96 US dollars. The market outlook is expected to fall to the 100% target of 77.81 US dollars and 114.6% of the target 76.77 US dollars. The y wave is a sub-wave of the adjustment (2) wave that started at $85.41. (2) The wave is a sub-wave of the upward ((3)) wave that started from $61.74.
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