Crude oil dips on China’s supply plan

3D Illustration of Oil Pump Jacks on Sunset Sky Background with Financial Analytics. Concept Of Falling Oil Prices

Highlights

  • Crude oil has fallen on Thursday.
  • China has decided to release its state oil reserves.
  • The US records lower-than-expected crude inventories.

Crude oil prices tumbled to two-week low levels on Thursday after China decided to release state oil reserves. The prices were additionally weighted by a smaller-than-expected drop in the US weekly crude inventories. November delivery Brent Crude oil futures last traded at US$71.35 per barrel up 0.21%, whereas October delivery WTI crude oil futures traded 0.23% down at US$67.98 per barrel as of 10 September 2021 at 10:02 AM AEST.

China's state reserve administration decided to release crude reserves in a phased manner through a public auction, helping domestic refiners to control prices. A significant drop of 7.2 million barrels in gasoline inventories has supported crude oil prices.

Bottom Line

Crude oil reached two-week low levels on Thursday after witnessing a smaller than expected drop in US weekly crude oil reserves and China's move to release state oil reserves.

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