top of page

Title: Oil drops after U.S. taps emergency reserves to cool prices

Writer's picture: analysiswatchanalysiswatch

Nov 23, 2021 07:31AM ET


By: AnalysisWacth


Oil prices fell on Tuesday after the United States announced it would release up to 50 million barrels of oil from its reserves to cool the market.


US President Joe Biden's administration said it would release 50 million barrels from US strategic petroleum reserves in the coming months.


The combination of a loan and a sale from the reserves is in coordination with other releases from strategic reserves by China, India, South Korea, Japan, and Britain, the White House said.


At 1213 GMT, Brent crude futures fell 61 cents, or 0.77%, to $79.09 a barrel, and US West Texas Intermediate (WTI) crude futures fell $1.06, or 1.38%, to $75.69.


The OPEC+ alliance between the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, has so far rejected Washington's repeated calls to pump more oil.


On Monday, prices rose more than 1% on Monday on reports that the group may adjust planned production increases if major consuming countries release crude from their reserves or if the pandemic curbs demand.


Prices have fallen from a three-year high of more than $86 on October 25th to below $80 a barrel following talks of a coordinated release and a possible hit to energy demand from a fourth wave of COVID-19 cases in Europe.


Analysts have said that a release from reserves is likely to have only a temporary impact on prices.

1 view0 comments

Comments


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page