Fundamental analysis
29 September, 2021
Oil prices fell for the second straight day on Wednesday as doubts re-emerged over demand, with COVID-19 cases continuing to rise worldwide and gasoline shortages in some regions. Oil prices have been charging higher as economies recover from pandemic lockdowns and fuel demand picks up, while some producing countries have seen supply disruptions. Traders expect Organization of the Petroleum Exporting Countries (OPEC) and allies, usually known as OPEC+, will decide to keep supplies tight when they meet next week. Oil demand is expected to rise strongly in the next few years, OPEC forecast on Tuesday, sounding a warning that the world needs to keep investing in production to avert a crunch even as it transitions to less polluting forms of energy. China’s weakening housing market and growing power outages have hit sentiment as any fallout for the world’s second-biggest economy would likely have a knock-on effect on oil demand, analysts said. Crude stocks rose by 4.1 million barrels for the week ended Sept. 24. Gasoline inventories rose by 3.6 million barrels and distillate stocks rose by 2.5 million barrels, the data showed.
