kyiv.Ukraine.Ukraine Gate – November 24,2021- On Wednesday, November 24, oil prices rose, after the maximum jump in two weeks following the results of the previous session after the announcement of the United States’ intention to sell 50 million barrels of strategic reserves (SPR).
The cost of a barrel of January Brent oil by 9:15 am in Kiev amounted to $ 82.53 (+ 0.87%). A barrel of January WTI crude was traded at $ 78.75 (+ 0.32%). The previous trading by standards ended at $ 82.31 and $ 78.5, respectively.
The United States on Tuesday, November 23, said it would release 50 million barrels. raw materials from their strategic oil reserves. This move was supported by China, India, South Korea, Japan and the UK.
Japanese Industry Minister Koichi Hagiud told reporters on Wednesday that the Land of the Rising Sun will put up for sale several hundred thousand kiloliters of oil from the state reserve, but the timing of the sale has not yet been determined.
Earlier, Japanese Prime Minister Fumio Kishida said that his government would free up some of the oil reserves in response to a US request, but would do so in a way that would not violate Japanese law, which allows the sale of reserves only in the event of a risk of supply disruptions.
Previously, the Nikkei reported that Japan will release about 4.2 million barrels of oil on the market. oil.
“The threat of an increase in supply in the short term will certainly create an artificial weakening of the oil market over the next 1-2 months. However, this move by US President Joe Biden and other leaders may simply push back the supply issue at a later date, as emptying the storage facilities will put even more pressure on the already small oil reserves, ”said Louise Dixon, senior oil analyst at Rystad in the report. Energy.
All eyes are now on how the members of the OPEC + group will react to the joint release of stocks during the ministerial summit on December 2.
Meanwhile, US crude oil inventories rose by 2.3 million barrels last week. with a forecast growth of 500 thousand barrels. This is evidenced by data from the American Petroleum Institute (API).
