OPEC+ may reassess its production increase plan, and Brent oil closed up 1% approaching $80

On Monday (November 22), U.
S.
oil futures rose $0.
81 to settle at $76.
75 per barrel
.
According to foreign media reports, if major consumer countries release crude oil from their reserves, or if the epidemic suppresses demand again, OPEC+, a group of OPEC and its allies, may adjust plans to increase oil production, causing oil prices to rebound and close higher
.

Seven government sources with knowledge of the plans said Japanese and Indian officials were working with the United States and other major economies to study how to release national crude reserves to depress oil prices
.
It will be the first time in history that major oil consumers have joined forces to curb the surge
in oil prices.
A person familiar with the matter said the situation is still developing and plans may change, but the United States is considering a gradual release of more than 35 million barrels of crude oil
.
Representatives for the U.
S.
Department of Energy did not immediately respond to a request for
comment.
A White House spokesman said no decision had been made on the release of reserve oil and that the United States had been in contact with other countries and was considering a range of options
to curb oil prices.

India has become the latest major consumer to consider putting oil inventories into line with U.
S.
actions to reduce the inflationary threat
from rising energy costs.
India has not yet made a decision on the timing and amount of emergency oil stockpiles and will coordinate pace with other major consuming countries
, government officials informed of the matter said on Monday.

It is reported that if the world's four largest oil consumers coordinate the release of strategic oil reserves, OPEC and its allies may reassess their plans
to increase oil production.
Joseph McMonigle, secretary general of the Riyadh-based International Energy Forum, said in a statement on Monday that OPEC+ energy ministers are expected to maintain their current plans
to gradually increase supply to the market.
But after a meeting with Japanese Foreign Ministry officials, McMonigle said certain unforeseen external factors, such as the release of strategic reserves or a new blockade in Europe, could prompt OPEC+ to reassess market conditions
.

John Kilduff, founding partner of Again Capital LLC, said the battle line has opened
.
Of course, OPEC and Saudi Arabia can win because all the cards are in their hands
.
They can reduce supply beyond the size
at which countries release their strategic petroleum reserves.
If WTI falls below $70, then I expect OPEC+ to respond
.

Phil Flynn, senior analyst at Price Futures, said OPEC is signaling that if these consumers do so, they can keep some crude and will offset the impact of
releasing reserves.
Fereidun Fesharaki, chairman of consultancy Facts Global Energy, said any release of the Strategic Petroleum Reserve would only have an impact
on prices for two to three weeks.

As the prospect of pandemic lockdowns in European countries heightened concerns about demand, this weighed on
crude oil prices.
Craig Erlam, senior market analyst at Oanda, said the market was fundamentally still in good shape, but lockdowns were clearly a risk
now if other countries followed Austria's lead.
A drop below $80 could deepen the correction, potentially pulling the price back into the $70 or so area
.