Crude oil closed mixed New York crude edged down 0.2%, its lowest close in nearly two weeks

News on November 17, the United States used the strategic petroleum reserve to reduce expectations to offset production growth pressure, crude oil closed mixed, New York crude oil hit the lowest close in more than a week
.

West Texas Intermediate (WTI) crude for December delivery fell 12 cents, or nearly 0.
2%, to settle at $80.
76 a barrel on Tuesday (Nov.
16), the lowest close since Nov.
4
.
Brent crude futures for January delivery rose 38 cents, or 0.
5 percent, to settle at $
82.
43 a barrel.
This follows two consecutive sessions
of decline.

Comments by Majority Leader Steny Hoyer in the U.
S
.
House of Representatives supported oil prices.
His speech lowered market expectations
that the United States would release the Strategic Crude Reserve (SPR) to help lower gasoline prices.
But the International Energy Agency (IEA) said on Tuesday that it expected an increase in crude oil production to help ease the global supply crunch, putting some pressure
on crude prices.

Phil Flynn, senior market analyst at The Price Futures Group, said: "The market now believes that the US is unlikely to release strategic crude oil reserves to help reduce high gasoline prices
.
”

U.
S.
House Majority Leader Steny Hoyer reportedly said Tuesday that he disagreed with Senate Majority Leader Chuck Schumer's recent call
to release strategic crude oil reserves to help lower gasoline prices.
In addition, Stephen Nalley, acting administrator of the U.
S.
Energy Information Administration (EIA), said at a U.
S.
Senate committee hearing on trends in domestic and international energy prices that the impact of the release of strategic crude oil reserves would be "short-lived.
"

"Obviously, common sense may take hold, because everyone knows that releasing the Strategic Crude Oil Reserve to lower gasoline prices will only be a short-term band-aid and will not solve the underlying problem
," Flynn said.
”

Schneider Electric (commodities analyst Christine Redmond said in a daily note: "In the monthly report, the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency said that the global oil market could become oversupplied by the end of the year, the former citing a fragile demand recovery due to the continued epidemic, and the latter pointing to a recent trend of strong production gains
.
”

"Oil production in the Permian region has grown
strongly over the past few months," she said.
The U.
S.
government expects oil production in the Permian region to reach record levels in December
.
In its monthly report released on Monday, the EIA forecasted an increase of 67,000 b/d in the Permian region to 4.
95 million b/d
in December.

The International Energy Agency said in its monthly report released on Tuesday that the tight supply-demand balance in the global oil market could ease
.
Oil production is expected to increase by 1.
5 million barrels per day for the rest of 2021, with the United States, Saudi Arabia and Russia accounting for about half
, the IEA said.

Flynn said the IEA "does look to U.
S.
energy producers to fill the gap" but may be "overly optimistic about what happens next year, especially with
the Biden administration introducing new rules.
" In a monthly report last week, OPEC lowered its growth forecast
for this year, citing the impact of high oil prices.

Traders also keep an eye on developments
related to Iran.
Iran has resumed production of advanced components and equipment for its nuclear program, reducing the likelihood that
Iran will strike a deal with world powers to revive the 2015 nuclear deal aimed at curbing its nuclear program.
At the same time, Flynn said the data showed better-than-expected U.
S.
retail sales data, giving the Fed "more leeway" to taper asset purchases and raise interest rates.

In addition, St.
Louis Federal Reserve Bank President Bullard hinted on Tuesday that the Fed should raise interest rates twice next year and accelerate tapering of bond purchases
.
Flynn said the comments caused oil prices to retreat
Tuesday morning.

Analysts expect EIA to report an average decline of 2.
5 million barrels in crude oil inventories, gasoline inventories by 100,000 barrels and distillate inventories by 1.
3 million barrels
in the week ending Nov.
12, according to a survey by S&P Global Platts Energy Information.

Among other exchange-traded energy products, gasoline rose 0.
9 percent to $2.
35 a gallon in December and heating oil rose 1.
34 percent to $2.
431 a gallon in December
.
December natural gas futures rose 3.
2 percent to $5.
177/MM British heat, driven by higher gas prices in Europe after German regulators suspended the certification process for the Nord Stream 2 pipeline that carries gas from Russia to Germany
.