Oil prices fell in Asian trade today amid heightened expectations that the United States, Japan and India will release quantities from their oil reserves to lower prices, despite the danger of declining demand due to the strengthening of the covid wave in Europe, Reuters reported.
The United States Department of Energy is expected to announcements today release quantities from its strategic oil reserve in coordination with other countries, said a source from the Biden administration.
The Brent variety from the North the sea cheaper by 30 cents or 0.4 percent to $ 79.40 a barrel.
US light crude fell 43 cents, or 0.6 percent, to $ 76.32 a barrel.
The two oil grades added more than 1 per cent yesterday amid reports that the OPEC + group could adjust its plans to increase oil production if large consumer countries release part of their reserves or if the pandemic puts pressure on demand.
Expectations for a coordinated release of strategic reserves still managed to lower quotations below $ 80 per barrel and the actual action is likely to have only a temporary impact. Analysts are turning their attention to the fourth wave of the COVID pandemic in Europe, which could shrink demand for the raw material.
However, the White House said it would continue to put pressure on OPEC and oil companies to match oil supply and demand.
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