# Oil drops on China fuel reserves release; OPEC+ meeting in view Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-11-01 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Oil Prices Fall on China's Fuel Reserve Release Meta Description: Oil prices fell after China released gasoline and diesel reserves to stabilize prices, with investors waiting for OPEC+ meeting on Nov. 4. URL: https://financedigest.com/oil-drops-on-china-fuel-reserves-release-opec-meeting-in-viewhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-11-01t011433z1lynxmpeha00eurtroptp4oil-global-kemp-1736837494380-compressed.jpg) By Yuka Obayashi TOKYO (Reuters) -Oil prices dropped on Monday as China’s release of gasoline and diesel reserves eased concerns over tight global supply, while investors cashed in ahead of a Nov. 4 meeting of major crude producers that could increase future production targets. Brent crude futures dropped 46 cents, or 0.6%, to $83.26 a barrel by 0746 GMT, after [gaining 6 cents](https://www.financedigest.com/survey-only-7-per-cent-of-businesses-gdpr-compliant-as-deadline-looms-data-privacy-gains-prominence.html "Survey: Only 7 per cent of businesses GDPR-compliant as deadline looms, data privacy gains prominence") on Friday. U.S. West Texas Intermediate (WTI) crude futures slid 64 cents, or 0.8%, to $82.93, having risen 76 cents on Friday. The [drops came after China](https://www.financedigest.com/wall-st-stocks-fall-bond-yields-rise-as-china-drops-quarantine-rule.html "Wall St stocks fall, bond yields rise as China drops quarantine rule") said in a rare official statement that it had released reserves of the two fuels to increase market supply and support price stability in some regions. Behind the selling was China’s release of fuels reserves, which reflected Beijing’s intention to stabilise [oil prices](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook"), just like coal prices,” said Chiyoki Chen, chief analyst at Sunward Trading. Also, investors took profits [ahead of an OPEC+ meeting,”](https://www.financedigest.com/stay-ahead-of-the-curve-and-meet-your-customers-payments-needs.html "STAY AHEAD OF THE CURVE AND MEET YOUR CUSTOMERS PAYMENTS NEEDS") Chen said. All eyes are on the Nov. 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, together called OPEC+, with analysts [expecting them to stick to a plan](https://www.financedigest.com/british-pm-sunak-expected-to-shelve-plans-to-privatise-channel-4-ft.html "British PM Sunak expected to shelve plans to privatise Channel 4 -FT") to add 400,000 barrels per day of supply in December. [Money managers](https://www.financedigest.com/why-choose-microsoft-money-as-your-financial-manager.html "Why Choose Microsoft Money As Your Financial Manager?") cut their net long U.S. crude [futures and options positions in the week](https://www.financedigest.com/small-business-advice-week-guiding-smes-to-a-brighter-future-in-light-of-brexit.html "Small Business Advice Week guiding SMEs to a brighter future in light of Brexit") to Oct. 26, the U.S. [Commodity Futures Trading](https://www.financedigest.com/a-brits-guide-to-understanding-commodity-trading.html "A Brit’s Guide to Understanding Commodity Trading") Commission (CFTC) said on Friday. [Oil prices](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") rallied to multi-year highs last week, helped by the decision by OPEC+ to maintain its planned output increase rather than raising it on global supply concerns. U.S. President Joe Biden on Saturday urged major G20 energy producing countries with spare capacity to [boost production](https://www.financedigest.com/4-tips-for-creating-a-calm-workspace-to-boost-productivity.html "4 tips for creating a calm workspace to boost productivity") to ensure a stronger global economic recovery as part of a broad effort to pressure OPEC+ to increase oil supply. But Iraq’s state [oil marketing company](https://www.financedigest.com/exxon-sues-eu-in-move-to-block-new-windfall-tax-on-oil-companies.html "Exxon sues EU in move to block new windfall tax on oil companies"), SOMO, said on Saturday Iraq sees no need to take any decision to increase its production capabilities beyond what has already been planned for OPEC countries. Kuwait supports the plan to increase [global oil](https://www.financedigest.com/global-stocks-close-in-on-4-week-highs-oil-rises-on-hopes-of-soft-landing.html "Global stocks close in on 4-week highs, oil rises on hopes of ‘soft landing’") supply which has been already agreed by OPEC+, the Gulf nation’s oil minister Mohammad Abdulatif al-Fares said on Monday, according to state news agency KUNA. Investors will likely resume [buying after confirming the OPEC+ decision](https://www.financedigest.com/survey-data-28-brits-say-brexit-sped-decision-buy-uk-holiday-home-year.html "Survey Data: 28% of Brits Say Brexit Has Sped Up Their Decision to Buy a UK Holiday Home This Year") on Thursday,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities. A Reuters poll showed that oil prices are expected to hold [near $80 as the year ends](https://www.financedigest.com/exclusive-nissan-seeks-tech-tie-up-without-renault-as-alliance-nears-end-of-road.html "Exclusive-Nissan seeks tech tie-up without Renault as alliance nears end of road"), as tight supplies and higher gas bills encourage a switch to crude for use as a power generation fuel. Spurred by [rising oil](https://www.financedigest.com/oil-rises-about-2-with-u-s-and-china-inflation-in-focus.html "Oil rises about 2% with U.S. and China inflation in focus") prices, U.S. energy [firms added oil](https://www.financedigest.com/uk-oil-gas-firms-to-leave-years-worth-of-output-in-ground-with-tax-hikes-report.html "UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report") and natural gas rigs for a 15th month in a row in October, taking them to the highest since April 2020, energy services firm Baker Hughes Co said on Friday. [Exxon and Chevron](https://www.financedigest.com/exxon-chevron-conceal-payments-to-some-governments-watchdog.html "Exxon, Chevron conceal payments to some governments -watchdog") are looking to add drilling rigs in the Permian shale basin after sharply cutting crews and output in the region last year, the companies said Friday. (Reporting by Yuka Obayashi; Editing by Richard Pullin and Kenneth Maxwell) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---