AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Crude oil prices rose on Tuesday.
- The prices reached one-week high.
- Leading oil consumers are expected to release millions of barrels of oil from their strategic petroleum reserves (SPR) to cool down oil prices.
Crude oil prices rallied to one-week highs on Tuesday after an initiative of the US along with other oil-consuming countries to release oil from their strategic reserves to cool rising oil prices, fell short of expectations.
However, on Wednesday at 12:24 PM AEDT, the prices dipped nominally. January delivery Brent Crude oil futures was trading at US$82.06 per barrel down 0.27%, whereas January delivery WTI crude oil futures traded 0.10% down at US$78.42 per barrel.
The countries including the US, India, China, South Korea, Britain, and Japan are expected to release millions of barrels of oil from their strategic reserves to cool down oil prices after the Organization of the Petroleum Exporting Countries (OPEC) and its allies repeatedly ignored the calls of the US to increase the production.
OPEC along with its allies, combinedly known as OPEC+ agreed to increase the production by 400,000 bpd each month till April 2022.
Who is weighing oil prices?
A strong US dollar, rising COVID-19 cases in Europe, and talks of coordinated reserves have dropped the prices of Brent Crude Oil by more than 10%, since the prices hit three-year highs of US$86.70 on 25 October 2021.
Source: Copyright © 2021 Kalkine Media
The US administration was expected to release 50 million barrels from the US Strategic Petroleum Reserve, expected to flow in the market by December 2021.
Bottom Line
Crude oil prices surged to one-week highs after the leading consumers of the world decided to reduce the volume of oil reserves to be released from their strategic reserves, an initiative to cool down rising oil prices.
