Oil prices deepened their losses by more than 1%, in trading today, Wednesday, with US crude falling below $ 80, before the release of official data on crude stocks in the United States.
This comes at a time when many experts expect that US President Joe Biden will resort to releasing oil from the strategic reserve, to curb the rise in fuel prices.
Oil Prices Today
By 12:04 pm GMT (03:04 pm Mecca Al-Mukarramah), Brent crude futures prices – January 2022 delivery – fell by about 1%, recording $81.58 a barrel.
The prices of futures contracts for West Texas Intermediate crude – for December delivery – decreased by 1.1%, recording 79.84 dollars per barrel.
US President Joe Biden’s administration is considering releasing oil from the Strategic Petroleum Reserve to cool gasoline prices, which hit a record high in California this week, but a number of lawmakers have mixed opinions on whether that is needed.
US House Majority Leader Steny Hoyer said late Tuesday that he disagrees with Senate Majority Leader Chuck Schumer’s call to take advantage of the Strategic Petroleum Reserve to lower the gasoline price, noting that the reserves are there to fill the crude oil supply gap in the United States. emergency times.
“With the holiday season approaching, the increase in travel demand may be the reason behind the decline in gasoline stocks in the United States,” says Leona Liu, an analyst at Singapore-based DailyFX. This may bring more pressure on President Biden to release the SPR. This could put oil prices at risk.
“The inventory report may act as a catalyst for the next step,” she added, referring to the US Energy Information Administration’s report on oil inventories, due later today.
Analysts say that strategic reserve oil will only provide temporary relief, and that what is required is an increase in supply from shale oil producers in the United States or the Organization of Petroleum Exporting Countries “OPEC”.
Vice President of Commodities at Kotak Securities, Ravindra Rao sees that if the US decides to free up stocks from emergency reserves, it could affect prices, albeit temporarily.
“The effect will also depend on the amount of release of stocks and whether it is done once or several times,” he said.
US Oil Stocks
Data from the American Petroleum Institute showed that gasoline stocks fell by 2.8 million barrels for the week ending November 12, Reuters reported.
The decline was much larger than the 600,000 barrel cut that 10 analysts polled by Reuters had expected.
Market sources said that crude stocks rose 655,000 barrels, which was less than analysts’ expectations for a build of 1.4 million barrels.
SOURCE : REUTERS