AUS
NZ
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Highlights
- Crude oil prices steadied on Wednesday.
- The US along with other oil consumers are expected to release oil from their strategic reserves.
- The US stockpiles rose by 1 million barrels in the last week.
Crude oil prices steadied on Wednesday as investors were not sure of the effectiveness of the initiative taken by major oil consumers to release oil from their strategic petroleum reserves (SPR). However, the prices edged up on Thursday afternoon. January delivery Brent Crude oil futures traded at US$82.47 per barrel down 0.38%, whereas January delivery WTI crude oil futures traded 0.14% up at US$78.50 per barrel as of 25 November 2021 at 12:34 PM AEDT.
The US along with other oil consumers including India, China, South Korea, Japan, and Britain is expected to release oil from their strategic reserves to cool down oil prices.
The coordinated release has the capability to add nearly 70-80 million barrels of crude supply. Earlier, OPEC+ agreed to increase the production by 400,000 bpd each month till April 2022.
Increase in stockpiles
The US stockpiles rose by 1 million barrels in the last week, as per the records of the Energy Information Administration. Additionally, the US crude stocks in strategic reserves tumbled last week to 604.5 million barrels, the lowest level since 2003.
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The number of US oil rigs rose to 467 in the current week, the highest since April 2020, as higher oil prices encouraged some oil players to begin the extraction of more oil.
Bottom Line
Crude oil prices steadied on Wednesday as the investors were not confident of the initiative taken by major oil consumers to cool down oil prices by releasing oil from their strategic reserves.
