Barrel rises 3% after the United States turns to emergency reserves

The oil prices rose Tuesday to a high of a week after USA and other consuming countries announced a release of tens of millions of barrels of oil reserves to try to cool the market.

USA said Tuesday it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and United Kingdom, to try to cool down prices after producers of the OPEC + They ignored requests for more crude.

However, analysts pointed out that the effect on prices is likely to be short-lived, after years of declining investment and a strong global recovery after the pandemic Covid-19.

The Brent futures rose $ 2.61, or 3.3%, to $ 82.31, while US crude West Texas Intermediate (WTI) it was up $ 1.75, or 2.3%, to $ 78.50.

It was the highest daily percentage gain in the Brent since August and its highest closure since November 16. It also made the cousin of the Brent about him WTI will reach its maximum from mid-October.

The conversations for the coordinated release of reserves, the dollar strength and the possible impact on energy demand of a fourth wave of cases of Covid-19 on Europe they have already made the Brent fell more than 10% from a three-year high of $ 86.70 on Oct. 25.

The government of the president Joe Biden said it would release 50 million barrels of the Strategic Petroleum Reserve (SPR) from USA, which will begin to hit the market in mid to late December.

“The coordinated release of the SPR (reserves) was lower than expected and, without a doubt, will be answered by a lower production of the OPEC +“said Edward Moya, senior market analyst at OANDA, noting that “no one would be surprised if (the OPEC +) reduce its production plans. “

The alliance OPEC + enter here Organization of Petroleum Exporting Countries and its allies, including Russia, has so far rejected repeated requests for Washington to pump more oil.

The Minister of Energy of the United Arab EmiratesSuhail Al-Mazrouei said on Tuesday that he saw “no logic” in increasing his own contributions to the markets at this time, and that the technical data collected pointed to a oil surplus in the first quarter of 2022.

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