Melbourne: Oil prices fell on Tuesday, reversing the previous session increase about the speaking of the United States, Japan and India would free raw reserves until benign prices despite the threat of shaken demand as the Covid-19 case lit in Europe.
The United States is expected to announce crude oil loans from emergency stockpiles on Tuesday as part of the plan produced by large Asian energy consumers to reduce energy prices, Biden administration sources familiar with the situation.
Brent crude futures fell 67 cents, or 0.8%, to $ 79.03 a barrel at 0721 GMT, while A.S.
West Texas Intermediate (WTI) futures fell 88 cents, or 1.2%, to $ 75.87 a barrel.
“U.S.
President Biden is said to be preparing to announce the oil release from its strategic oil reserves in concerts with several other countries …” Anz said in a note.
Brent and WTI have risen 1% on Monday on the organization’s reports of petroleum, Russian and allies countries, alliances known as OPEC +, can adjust their plans to increase oil output if large consumer countries release crude oil from their backup or if.
Pandemic dampens demand.
With talks about the release of coordinated crude oil after successfully directing prices back below $ 80 per barrel and the actual release is only expected to have a temporary impact, analysts change their attention to the potential for the demand for the fourth wave of Covid-19 cases in Europe.
“With a rather balanced speculative position, international travel reopens and raises fuel demand, and with OPEC + constraints in mind, every further sale tends to be short and unsustainable,” Jeffrey Halley, senior market analyst at Oanda.
He said only Europe could suppress the price and bearish bets must die if the northern hemisphere experienced winter.
“As a European, and especially Eastern Europe, struggling to stop the spread of Covid-19, the risk of steps such as locking looks big,” said Rystad Energy Louise Dickson analyst.
He said the request in November for roads and Jet Fuel in Europe is expected to fall to 7.8 million barrels per day (BPD) of 8.1 million BPD in October, even though part of it is a normal decline for this year.
“If the new locking wave is enforced in Europe, oil prices will not be spared for the remaining flu season in the northern hemisphere,” Dickson said in comments sent via email.