Fundamental analysis
30 September, 2021
Oil prices held steady on Thursday after rising above $80 a barrel this week, shrugging off bearish factors such as rising U.S. crude oil inventories and a strong dollar amid consensus that a supply deficit will stay for coming months. In another typically bearish development, the U.S. dollar held near one-year highs, making oil more expensive for holders of other currencies. But expectations of a continued supply deficit supported prices. Citigroup is forecasting oil balances to be in a 1.5 million-barrel-per-day deficit on average over the next six months, even with continued supply increases. Next week, the Organization of the Petroleum Exporting Countries and allies including Russia, a grouping known as OPEC+, are expected to hold to a pact on adding 400,000 barrels per day (bpd) to their output for November.
