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.