International games are increasing, spare capacity is shrinking, and the release of reserve oil is difficult to change the trend of oil prices

The White House announced on November 23 that the U.
S.
Department of Energy will release 50 million barrels of crude oil from the Strategic Petroleum Reserve and will start selling it to the market as early as mid-to-late December this year to ease the pressure
of high oil prices and inflation caused by oil supply constraints as the economy recovers from the new crown pneumonia epidemic.
This is the fourth time in U.
S.
history that reserve oil
has been released.
At the same time, the United States called on many countries to also put oil reserves in order to suppress high international oil prices
.
As of Nov.
19, the total storage of the U.
S.
Strategic Petroleum Reserve was about 605 million barrels
, according to the U.
S.
Department of Energy.

US President Biden just announced the news, and international oil prices rose 2.
6%
on the day.
This is not that the market wants to hit Biden's confidence in stabilizing oil prices, but that the amount of oil to be released by the United States and South Korea, Japan, and India relative to the average global daily demand is really a small witch.

At present, the average daily global oil demand is about 100 million barrels, and according to Citibank analysts, the United States and other responding countries put together 100 million to 120 million barrels of reserve oil, of which 50 million barrels in the United States is not enough for the United States to consume oil for 3 days.

Therefore, the international oil market looks like it is going its own way, responding to Biden's call
with oil prices not falling but rising.

Oil prices did not give the United States a desired response, and OPEC+ ignored repeated calls by the United States to increase production
.

After the United States and its allies announced a joint release of strategic oil reserves, but international oil prices remained high, major OPEC+ producers, led by Saudi Arabia and Russia, said they were considering suspending plans
to provide more oil to the world recently.

To this end, on November 24, the International Energy Agency (IEA) accused Saudi Arabia, Russia and other major energy producers of creating "artificial tensions" in the global oil and gas market, urging OPEC+ to accelerate the recovery of supply
.
However, given that OPEC+ has repeatedly ignored the United States' communication to increase production significantly, OPEC+ may not only ignore it, but change the original plan
to increase production slightly as warned by the International Energy Forum IEF.
OPEC+ representatives confirmed that if many countries such as the United States, Japan and India release strategic oil reserves, OPEC+ may adjust its oil production plan and suspend production
increases.

In addition, data released by the U.
S.
Energy Information Administration on November 24 showed that U.
S.
commercial crude oil inventories, excluding strategic reserves, increased more than expected in the week ended November 19, and refined oil inventories and gasoline inventories both fell more than expected
.
U.
S.
Strategic Petroleum Reserve (SPR) inventories are now at their lowest level since June 2003; U.
S.
gasoline inventories fell to their lowest level
since November 2017.
After the release of U.
S.
EIA data, U.
S.
crude oil prices edged higher by $
0.
3 in the short term.
And in the past two years, the United States has reduced investment in oil extraction due to the coronavirus pandemic and carbon neutrality commitments, resulting in 250 fewer oil rigs operating this year and producing 11 million barrels per day in 2021, down 1 million barrels from 12 million barrels
in 2019.
It takes as little as three or four years for investment to take effect, and now that U.
S.
oil production is declining, the likelihood of a rapid increase in production in the short term is almost nil
.

Oil investment elsewhere in recent years has been similar to
that in the United States.
OPEC, oil industry executives and analysts have repeatedly warned this year that global oil demand is still growing and that chronic underinvestment in oil supplies will lead to a supply crunch
within a few years.
Eni CEO Laudioo Descazi believes that the oil and gas industry has underinvested in recent years, and now only 50% of the investment in 2013, and it will take some time
for oil companies to resume investment.

Saudi Aramco, Saudi Arabia's national oil company, said in October that global oil production was declining rapidly and that companies needed to invest more in production
.
Saudi Aramco CEO Amin Nasser revealed that "global spare capacity is shrinking"
.
A few days ago, the IEA said that the collapse of commodity prices from 2018 to 2020 led to a decline in oil and gas investment, and energy prices in developing countries were in a "dangerous zone"
.

As long as international oil prices fluctuate at a high level, the inflation rate of various countries cannot fall, and each of us needs to bear the pressure
of rising prices.