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Oil Down, China Releases Gasoline, Diesel Reserves -Breaking


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By Gina Lee – Oil was down Monday morning in Asia, after to boost supply. Investors have also paid off long positions in advance of the Organization of the Petroleum Exporting Countries (OPEC+), meeting.

At 10:34PM ET (23:34 GMT), the price of $83.67 had dropped 0.06% and $83.33 was down by 0.29%.

China’s National Food and Strategic Reserves Administration said on Sunday that the reserves were released to increase market supply and support price stability. China is the world’s top oil importer.

Hiroyuki Kikukawa (OTC) Securities general manager for research said to Reuters that “investors are adjusting position after the news about China’s fuel reserve release and before the OPEC+ Meeting.”

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Also on investors’ radars is the OPEC+ meeting on Nov. 4, where the cartel is widely expected to leave its plan to add 400,000 barrels per day of supply in December 2021 unchanged. OPEC+ opted to continue its planned increase in output rather than increasing it because of global supply issues last week. The result was a boost to oil’s multi-year peak.

“Still, some investors want to square their positions as there is a chance that OPEC+ will decide a bigger increase in output,” said Kikukawa. He said that investors will continue to buy after the cartel’s announcement.

The Group of 20 summit (G20), held in Rome over the weekend, ended with disappointingly low-level agreements to restrict the use of fossil energy. Investors will now be watching the COP26 meeting in Glasgow from October 31 through Nov. 12 for a chance to see if there is a breakthrough.

Investors are also interested in the possibility of a relaunched nuclear dialogue between Iran and the world powers. This could allow for Iran to resume oil exports. Talks with Europe could re-start “toward the end of November,” U.S. Secretary of State Antony Blinken said on Sunday.

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