22 Nov 2021
Oil Falls to 7-Week Low as Pressure for Release of Oil Reserves Continues
The Index Today
Oil prices on Monday came off low after Japan said it would consider the release of oil reserves. The ongoing covid crisis in Europe has also raised concerns of oil supplies and demand. Brent fell 0.2% to $78.75 a barrel as of 0502 GMT. THE West Texas Intermediate crude futures fell to $75.90 a barrel.
Both Brent and WTI recorded their lowest levels since October, going down 3% on Friday after four consecutive weeks of decline. Japan hinted on Saturday that it will look into stockpiles and weigh options in order to manage high prices.
On Friday, the White House asked OPEC countries to keep supply steady to combat inflation. With the combined release of the Strategic Petroleum Reserve, 100 to 120 million barrels of oil could be added further to global supply. On the other hand, Europe’s deteriorating situation have added to more market uncertainty.
The U.S Commodity Futures Trading Commission said on Friday that the money managers have cut their crude futures and options positions for the week of Nov 16. Investors are looking closely to the situation in the Middle East where the Saudi-led coalition is fighting against the Houthi movement in Yemen.