Jakarta, CNBC Indonesia – World oil prices shot up in trading this morning. However, it seems that the increase was more due to a technical rebound after yesterday’s price fell more than 2%.
On Friday (11/19/2021) at 07:04 WIB, the price of Brent oil was at US$ 81.24/barrel. Soared 1.2% from the previous day’s position.
While the light sweet type is priced at US $ 79.01/barrel. An increase of 0.83%.
The spike in the price of the black gold occurred after a fairly deep correction. Yesterday, Brent and light sweet prices fell 2.61% and 2.97%, respectively.
In addition, oil prices are actually still undergoing a correction trend. In the past week, Brent and light sweet prices fell 2.3% and 3.44%, respectively. Over the past month, the corrections reached 4.84% and 4.44%, respectively.
Therefore, this morning investors are back hunting for oil contracts. It’s okay, the price has been discounted quite a lot. This wholesale action then raised oil prices.
Oil prices are still shrouded in negative sentiment. The United States (US) is gathering strength with various countries to release their respective oil stocks. The release of this stock will make the supply abundant so the price can be cheaper.
Citing Reuters, an official at the White House said the United States was exploring this with China, India, Japan, South Korea and other major oil consuming countries. Washington has contacted Tokyo and Seoul, both countries are willing to ‘flood’ the market with oil stocks to control prices.
“Talks are underway with various partner countries,” said Jen Psaki, a spokeswoman for the White House.
Various parties view this effort as a form of protest against the world oil cartel, OPEC+. Joseph ‘Joe’ Biden, US President, has long asked OPEC+ to increase production to prevent oil prices from rising too high. However, OPEC+ remains on its decision, only wanting to increase production by 400,000 barrels per day per month until the end of this year.
“This is not a problem of non-existent (oil) supply. There are about 5 million barrels per day available, but not released for some reason,” said Hardeep Singh Puri, India’s Oil Minister, as reported by Reuters.
Are ‘Captain America’ and the ‘Avengers’ really going to throw their oil stocks into the market? Is this step effective in reducing oil prices? How will the OPEC+ ‘Thanos’ react to this move?
We’ll just wait…
CNBC INDONESIA RESEARCH TEAM
(aji / aji)
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