Brent crude oil futures rose 2.61 US dollars or 3.3% to close at 82.31 US dollars, while US West Texas Intermediate (WTI) crude oil rose 1.75 US dollars or 2.3% to close at 78.50 US dollars.

After the United States and other consumer countries released tens of millions of barrels of oil from reserves in an attempt to cool the market, oil prices rose to a one-week high on Tuesday, but did not meet some expectations.

The United States said on Tuesday that it would coordinate with China, India, South Korea, Japan, and the United Kingdom to release millions of barrels of oil from its strategic reserves in an attempt to cool oil prices after OPEC+ oil-producing countries repeatedly ignored calls to increase crude oil.

But analysts said that after years of declining investment and a strong global recovery from the COVID-19 pandemic, the impact on prices may be short-lived.

Brent crude oil futures rose 2.61 US dollars or 3.3% to close at 82.31 US dollars, while US West Texas Intermediate (WTI) crude oil rose 1.75 US dollars or 2.3% to close at 78.50 US dollars.

This is the largest single-day percentage increase of Brent crude oil since August and the highest closing price since November 16. This also pushed the premium of Brent crude oil relative to WTI to the highest level since mid-October.

Discussions about the release of coordinated reserves, the strengthening of the U.S. dollar, and the potential blow to energy demand from the fourth wave of COVID-19 cases in Europe have caused Brent crude oil prices to fall by more than 10% since reaching a three-year high of $86.70 in October. 25.

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Analysts expect the latest weekly oil inventory data in the United States to show a decrease of 500,000 barrels in crude oil inventories.

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The administration of President Joe Biden has stated that it will release 50 million barrels from the US Strategic Petroleum Reserve (SPR), which will be put on the market in mid-to-late December.

Edward Moya, senior market analyst at OANDA, said: “The coordinated SPR release is lower than expected. There is no doubt that OPEC+ production will decrease,” he pointed out, “If (OPEC+) reduces its production plan, No one will be surprised.”

So far, the OPEC+ between the Organization of Petroleum Exporting Countries and its allies, including Russia, has rejected Washington’s repeated requests to increase oil production.

United Arab Emirates Energy Minister Suhail Al-Mazrouei said on Tuesday that the UAE currently believes that increasing its contribution to the global market is “not logical”, adding that the technical data collected before the upcoming OPEC+ meeting in December shows that this year’s oil surplus . The first quarter of 2022.

Analysts said that companies that bought oil from the US SPR will have to return it between 2022 and 2024, when the price was much cheaper than it is now. The futures price in 2022 will be approximately US$75, in 2023 it will be US$69, and in 2024 it will be US$65.

Bjornar Tonhaugen, head of oil market at Rystad Energy, said: “We…expect the curve to flatten out because some SPR versions will need to be added again.”

The rise in oil prices came before industry organizations, the American Petroleum Institute (API), and the U.S. Energy Information Administration released reports on U.S. inventories on Tuesday.

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Analysts expect the latest weekly oil inventory data in the United States to show a decrease of 500,000 barrels in crude oil inventories.

At the same time, after Fed Chairman Jerome was re-elected, the U.S. dollar index remained near a 16-month high on Tuesday, strengthening the market’s expectations that U.S. interest rates will rise in 2022.

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A stronger dollar makes oil prices more expensive for holders of other currencies, which traders say is putting pressure on crude oil prices.

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