Contracts on crude oil continued to decline. after news that the US is preparing to drain its strategic inventories (SPRs) to curb the surge in market prices. Bloomberg data reported West Texas Intermediate (WTI) crude oil contracts for November delivery at 10:11 pm local time. It was trading on the NYMEX minus $ 2.63, or 3.088%, at $ 82.83 a barrel. Brent crude oil was down $ 2.19, or 2.39 percent, to $ 89.43 a barrel.
Previously, US President Joe Biden would have announced this week his intention to drain oil from SPR reserves to curb the surge in oil prices. When the deadline for the US midterm election on November 8 comes, Biden’s decision has been made. After the Organization of Petroleum Exporting Countries (OPEC) and its allies or OPEC Plus Earlier this month there was a resolution to cut production in a big way. Against US demand, Biden is expected to announce 14 million barrels of oil from SPR this week. After announcing in March that he would drain 180 million barrels of oil between May and October.
In addition, oil prices have been driven by concerns that the acceleration of interest rate hikes by the Federal Reserve (Fed) and central banks around the world. it will lead the economy to face a recession and affect the demand for oil
Investors will be keeping an eye on the American Petroleum Institute (API) release of U.S. crude stocks today, while the U.S. Federal Energy Information Administration (EIA) releases it tomorrow. Analysts had expected US crude oil inventories to rise last week.
#world oil
#War of oil
