Oil prices stable at USD 80 per barrel as U.S. taps emergency reserves
Category: #headlines  | By Nikita Chaurasia  | Date: 2021-11-25 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Oil prices stable at USD 80 per barrel as U.S. taps emergency reserves

Oil prices were steady at around USD 80 per barrel after the United States announced to have released 50 million oil barrels from its reserves to ease the post-COVID-19 situation. The development echoes similar moves by other nations such as Great Britain, Japan, South Korea, India, and China as a majority of consumers battle against the rising inflation.

However, experts believe that the oil prices will be short-lived, especially amid declining oil investments combined with a robust global COVID-19 pandemic recovery.

It is worth noting that West Texas Intermediate (WTI) crude futures in the United States were at USD 76.97, up 0.29%, while Brent crude futures were at USD 80.23 per barrel, a 0.66% increase from an early low of USD 78.55.

The Biden administration has revealed that the release of 50 million oil barrels from the U.S. SPR (Strategic Petroleum Reserves) will start hitting markets by December this year. This organized release, coupled with Europe's fourth wave anticipated hit to energy consumption has resulted in a drop in oil prices from a three-year high of USD 86 to USD 80.

Some analysts have claimed that the 50-million-barrel release by the U.S. exceeds industry expectations, as the country had already scheduled on selling 18 million oil barrels. However, the SPR releases only help in protecting current market disruptions and provide a weaker narrative when it comes to resolving the balance between growing demands and inadequate funding.

Meanwhile, Russia and a few OPEC (Organization of Petroleum Exporting Countries) allies have rejected U.S. requests to pump more oil, despite frequent attempts.

Speaking of which, UAE Energy Minister Suhail Al-Mazrouei stated that there is “no logic” in contributing to global markets at the moment since technical projections predict an oil surplus in the first quarter of 2022.

On the other hand, analysts expect there will be increased price turbulence in the future due to soaring political unrest between OPEC nations and the world's largest consumers.

Source credit:

https://auto.hindustantimes.com/auto/news/oil-steadies-around-80-after-us-taps-emergency-reserves41637676862237.html#:~:text=Oil%20prices%20steadied%20near%20%2480,reserves%20to%20cool%20the%20market.

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

EasyJet sees a rise in bookings as customers plan their next vacations

EasyJet sees a rise in bookings as customers plan their next vacations

By Nikita Chaurasia

British multinational low-cost airline group, EasyJet, has reported a record surge in bookings for the month of January as people prioritized their travel plans for the coming year. The news comes as airlines world over start to show signs that they&...

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

Dr. Reddy’s becomes India’s second biggest drugmaker by sales

By Nikita Chaurasia

Dr. Reddy's Laboratories Ltd. and Cipla Ltd. surpassed Aurobindo Pharma to rank as the 2nd and 3rd largest drug manufacturers in India by sales in the three months that ended on September 30. This was the first change in the pecking order of the ...

UK’s business confidence drops to its lowest point since 2009

UK’s business confidence drops to its lowest point since 2009

By Nikita Chaurasia

According to recent data, business confidence in the UK dropped to 18% in October, which was its lowest level in at least 13 years. In contrast, however, net balances of confidence stood at 28% in June and 56% in February, according to Accenture and ...