OPEC lowered its global demand forecast for the fourth quarter, and U.S. oil briefly fell to near $80 intraday

On Thursday (November 11), U.
S.
oil fell $0.
16, or 0.
2%, to close at $81.
18 per barrel
.
Earlier, the Organization of the Petroleum Exporting Countries (OPEC) lowered its 2021 oil demand forecast due to high oil prices, and oil prices fell to around
$80.
Meanwhile, with inflation at multi-decade highs, US President Joe Biden is under increasing pressure, including from party insiders, to take action in response to rising
energy prices.
His options include releasing the Strategic Petroleum Reserve or even banning oil exports, putting pressure
on oil prices.

OPEC said in a monthly report that it expects average oil demand of 99.
49 million b/d in the fourth quarter of 2021, 330,000 b/d
lower than last month's forecast.
Demand growth forecasts for this year were cut by 160,000 b/d to 5.
65 million b/d
.
Raised forecasts for U.
S.
shale producers next year, which could put a headwind on efforts by the group and its allies to balance the market, with the assumption that the pace of recovery in the fourth quarter of 2021 will slow
due to higher energy prices.
The group also cited slower-than-expected demand in India as the reason for the
downward revision of the forecast.

According to the latest forecasts, global oil consumption is expected to cross the 100 million b/d mark in the third quarter of 2022, three months
later than last month's forecast.
Global oil demand is expected to rise by 4.
15 million b/d next year, maintaining last month's forecast, which will push global oil consumption above 2019 levels
.

But Jim Ritterbusch, president of Ritterbusch and Associates LLC, said oil prices will reach new highs
as global oil demand outpaces new production and the factors needed for the oil market to top remain uncertain.
We are now in a situation where rising demand is causing prices to rise, so a longer-term supply solution
is needed.
Meanwhile, traders cited Wood Mackenzie data that crude inventories fell by about 36,000 barrels
in Cushing, Oklahoma, the delivery site of U.
S.
benchmark crude futures on Nov.
5-9.

High inflation has put pressure on the Biden administration
.
Biden said reversing inflation is a top priority, especially in the energy sector
.
The National Economic Commission has been directed to explore ways to lower energy prices and has asked the FTC to address "any market manipulation or price gouging.
"
Subsequently, 11 US Democratic lawmakers, including several known for their concern about climate change, urged Biden to act quickly, including releasing oil from the SPR and even adopting a more radical ban on US crude oil exports to solve the problem of
rising gasoline prices.

Edward Moya, a senior analyst at OANDA, said: "Crude oil prices are trying to gain a foothold and fell yesterday as soaring inflation in the United States increased pressure
on the Biden administration to use strategic oil reserves.
But energy traders know that releasing the Strategic Petroleum Reserve will only bring very short-term price declines and will not relieve much pressure
on U.
S.
consumers.
”