Oil prices continue going up after the maximum increase in two weeks

On Wednesday, oil prices continue going up after the maximum increase in two weeks following the results of the previous session following the announcement of the US intention to sell 50 million barrels of oil from the Strategic Petroleum Reserve (SPR), Interfax reports.

US President Joe Biden said on Tuesday that the move has been coordinated with China, Japan, India, South Korea and the UK.

Experts note that over time, all these states will have to restore strategic reserves, and this will lead to a new wave of growth in oil demand.

The cost of Brent January futures amounted to $82.38 per barrel, which is $0.07 (0.09%) higher than the price at the close of the previous session. As a result of trading on Tuesday, these contracts rose by $2.61 (3.3%) to $82.31 per barrel.

WTI January futures cost  $78.72 per barrel, which is $0.22 (0.28%) higher than the final value of the previous session. By the close of trading on Tuesday, the value of these contracts increased by $1.75 (2.3%) and amounted to $78.5 per barrel.

“Although the volume of the reserves issue itself deserves attention - 50 million barrels can meet the daily needs for raw materials of about half of the world - the most important thing in the White House's statement is the coordination of actions of the world's largest consumers and importers of oil, which could jeopardize control for a short time. oil market by the OPEC+ countries,” Robbie Fraser, an analyst at Schneider Electric said.

Now the market is waiting for OPEC+ to react to the actions of the countries that are key clients of the alliance. Earlier, OPEC+ representatives said that the opening of strategic reserves by the United States and other countries is unjustified under current market conditions.

Tags: oil, USA, Asia, OPEC+, negotiations, price, petroleum products, oil deliveries, oil reserves, economy, Biden, China

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