November 23, 2021

Oil Prices Silence! Will America Publicize Something Today?

 The crude oil market continues to be plagued by uncertainty about the withdrawal of supplies from U.S. reserves and the growing cases of Covid-19 infection in Europe.

Towards the end of the Asian session, Brent crude traded gloomily around $ 79.30 a barrel, while US WTI oil futures were down at $ 76.20 a barrel.

According to the latest report, the US Department of Energy is expected to announce oil loans from its emergency reserves of the Strategic Petroleum Reserve (EC) on Tuesday.

The move was taken to bring down soaring energy prices after the world's major oil producers, OPEC and its allies refused to increase production despite repeated pressure from the US and other consumer countries.

However, the withdrawal is expected to have only a temporary effect on the oil market and this will provide relief for investors.

Even so, with the fourth wave of Covid-19 again hitting Europe’s largest economy, Germany, the oil market remains undecided.

In fact, with the expectation of tighter sanctions to be implemented by the winter, crude oil prices remain below the $ 80 a barrel price level.