Tapping stockpile may not relieve fuel price pain

NEW DELHI: Fuel consumers are unlikely to get much relief as the United States move to rally world’s top oil consumers, including India, to tap into their emergency stockpiles may have unwittingly given OPEC+ a reason to maintain the current production course at its forthcoming review meeting on December 2.
An indication came on Thursday after the OPEC advisory committee meeting took the view that the coordinated release will “bloat the surplus” in the market. The grouping has so far rebuffed appeals, particularly from the US and India, to raise production, which resulted in the US call for a coordinated release of stocks by China, India, Japan and South Korea.
In case the OPEC+ decides to maintain the current production level, it will prolong the buoyancy in oil prices. OPEC is struggling to meet the target of adding 400,000 barrels/day each month agreed as part of a deal because several of its members are unable to meet their production quota. Rising demand from Asia, OPEC’s main market, will offset concerns over worsening Covid situation in Europe.