Crude oil dips as China readies crude reserve release

November 19, 2021 01:40 PM AEDT | By Arpit Verma

Crude oil dips as China readies crude reserve release — Image source: Falling crude oil prices | Source: © Krisdog | Megapixl.com

China gets crude reserve release ready

The prices slumped to six-week lows during the early trade session after China decided to tap reserves. Further on Wednesday US asked large oil-consuming nations to release oil from their stockpiles to cool down prices.

The United States' move to ask China to join a coordinated action comes on the back of the rise in gasoline prices and other inflationary pressure that have prompted a political backlash.

The release of oil from the US and China is likely to drive the oil prices lower, at least temporarily.

Oil rig

Oil rig | Source: © Tebnad | Megapixl.com

The prices hit seven year-highs in October as the market focused on a sharp rebound in the demand for energy as most people received COVID-19 shots and lockdowns were lifted.

Bottom Line

Crude oil prices are under pressure as the leading economies across the globe decided to release oil from their strategic petroleum reserves, a move to cool down skyrocketing oil prices.

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