Institutions: Oil prices rose slightly

Oil prices rose slightly as the market was volatile, ending Oct.
21: WTI rose 0.
54 to $85.
05 a barrel, or 0.
6%, in December; Brent rose 1.
12, or 1.
2%,
to $93.
5 a barrel in December.
China crude oil futures SC 2212 closed up 3.
5 yuan / barrel at 670.
7 yuan / barrel
.
At present, the main logic that dominates oil prices is still the economic downturn expectation in the context of the Fed's interest rate hike VS the risk premium caused by the insufficient spare capacity under the control of OPEC+ and the Russia-Ukraine conflict, and the long-short force is more balanced
.

Judging from the news, first, US officials may set the price ceiling of Russian oil above $60 / barrel to maintain supply, which is higher than the earlier signal, although Russia has also previously said that it refuses to supply oil
to countries that have adopted price limits.
Second, the Houthis admitted to attacking the port of AlDhaba, east of Mukalla, the capital of Haderramau province in eastern Yemen
.
The main function of the port is the export
of crude oil.
Third, Biden announced an increase of 15 million barrels from the SPR in December, extending the initial timeline and fulfilling a commitment of 180 million barrels, with the Department of Energy willing to sell more
after December if necessary.
However, it was then said that when the US oil price reached or fell below $72 / barrel, the United States would replenish the Strategic Petroleum Reserve (SPR), which indicates that the Biden administration is backing crude oil in disguise
.

On the whole, the short-term positive news supports oil prices, but before the Fed's aggressive interest rate hike is over, the long-term downward trend of crude oil remains unchanged, and it is recommended to stay on the sidelines for the time being under the current situation
.