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Oil Down, but Persistent Supply Concerns Cap Losses By


© Reuters.

By Gina Lee – Oil was down Wednesday morning in Asia. However, prices for crude oil, and coal continue to fall as the world energy crisis persists.

Brent futures also capped worries over supply. The black liquid also digested a decision made by the Organization of the Petroleum Exporting Countries plus (OPEC+) that it would continue its planned output growth.

At 12:03PM ET (4:03AM GMT), it was at $72.50, down 0.25 percent. It then fell to $78.83 by 0.13%.

The cartel’s decision, announced on Monday, said that OPEC+ would adhere to its July pact to boost output by 400,000 barrels per day (bpd) each month until at least April 2022, without increasing the figure.

“Crude Oil extended gains as investors fret over tightness in market as the energy crises hikes demand,” ANZ wrote in a statement.

“Considering the global energy crisis, the OPEC+ rise was far below the expectations of the markets. Not surprisingly, there is speculation that OPEC will be forced to move before the next scheduled meeting if demand continues to surge,” the note added.

In September, the OPEC Joint Technical Committee stated that they expected a 1.1 Million bpd supply shortfall in 2021. This could rise to a 1.4 Mio bpd surplus by 2022.

U.S. data on crude oil supplies showed that the world’s second-largest importer of oil was experiencing a decrease in demand.

The Tuesday release of the reflected a 951k barrel build for week ending October 1.’s forecasts predicted a draw at 300,000 barrels. However, a 4.127-million barrel build was reported during the preceding week.

Investors await the announcement, expected later today.

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