LAST UPDATE 22:55
Oil closed sharply on Tuesday, despite US President Joe Biden’s decision to release quantities from US strategic reserves as part of a concerted effort by energy-consuming countries to tackle the price rally.
In particular, the January crude contract gained $ 1.75 or 2.3% and completed trading at $ 78.50 a barrel on the New York Mercantile Exchange. Brent January was up $ 2.61, or 3.3%, at $ 82.31 a barrel on ICE Futures.
The White House announced today that the US plans to release up to 50 million barrels of crude oil from its strategic reserves in the coming months, in order to normalize the fuel prices that have soared.
As announced, the US move will be combined with the release of strategic reserves from other countries, such as China, India, South Korea, Japan and Great Britain.
However, the market does not seem to be “convinced” by the announcement, with analysts attributing the current price rally on the one hand to the fact that the release of strategic stocks from the US was lower than expected, and on the other hand to the fact that it will be in the form of a loan. and sale.
In particular, according to the White House, the release will take place in two parts: 32 million barrels will be available in the coming months in the form of exchange, which will be restored in the coming years, while 18 million barrels will be sold as part of the acceleration. of the sale of oil approved by Congress.
The White House added, however, that the US is ready to take additional measures, if necessary, in order to normalize crude prices.
Oil prices have fallen below $ 80 a barrel in recent days from a three-year high of $ 86 a barrel on October 25, thanks to reports that talks are under way between major oil consuming countries to release coordinated strategic reserves. and fears of another possible blow to demand from the fourth wave of the pandemic hitting Europe.
“Puzzle” is the answer of OPEC +
On Monday, however, oil prices recorded gains of more than 1% amid reports that OPEC + could adjust its planned output increases if major oil consumers were to coordinate the release of strategic stocks.
Biden: Do not wait idly for energy prices to fall on their own