Oil
BreakingHighlightOil & GasTop StoryTrending Story

Oil prices near $80 as US set to release 50mn barrels of oil to ease energy costs

552

Oil prices steadied near $80 a barrel on Tuesday after the United States announced plans to release up to 50 million barrels of oil from its reserves to cool the market,according to findings by Persecondnews.com

The Biden administration has argued that the supply of oil has not kept pace with demand as the global economy emerged from the pandemic, and the reserve is the right tool to help ease the problem.

Americans used an average of 20.7 million barrels a day during September, according to the Energy Information Administration. That means that the release nearly equals about two-and-a-half days of additional supply.

The decision comes after weeks of diplomatic negotiations and the release will be taken in parallel with other nations. Japan and South Korea are also participating.

Persecondnews.com, gathered that Brent crude futures were down 12 cents, or 0.15%, at $79.58 a barrel by 1304 GMT after earlier dropping as low as $78.55. U.S. West Texas Intermediate (WTI) crude futures were down 50 cents, or 0.65%, at $76.25.

Although the 50 million barrel release by the United States was above market expectations, 18 million barrels had already had already been planned for sale, said UBS analyst Giovanni Staunovo.

“Big headline number but the details provide a less strong narrative,” Staunovo said.

“SPR releases are a tool used to cover temporary production disruptions and are not useful to fix imbalances caused by lack of investment and still rising demand.”

The OPEC+ alliance between the Organization of the Petroleum Exporting Countries OPEC and allies including Russia has so far rebuffed repeated requests from Washington to pump more oil.

The United Arab Emirates Energy Minister Suhail Al-Mazrouei on Tuesday said that the UAE sees “no logic” in increasing its own contributions to global markets at the moment, adding that technical data gathered ahead of an upcoming OPEC+ meeting in December pointed to an oil surplus in the first quarter of 2022.

 

Leave a comment

Related Articles

Alleged $45m money laundering: Court remands El-Rufai’s ex-Chief of Staff in prison

Bashir Sa’idu, former Chief of Staff to ex-Governor of Kaduna State, Nasir...

Edo Gov. election tribunal: Gov. Okpebholo orders probe into alleged DSS assault on journalists

Edo Gov. Monday Okpebholo has called for a probe into the alleged...

FirstBank Bountiful Harvest of Awards In 2024 – Testament To Excellence And Stakeholder Trust

In the gilded halls of excellence where dreams are crafted into legacies,...

Football development: NFF begins construction of hostel, world-class pitches

The Nigeria Football Federation (NFF) has commenced the construction of a hostel...

Nigeria secures endorsement of seven countries for UNESCO media institute

Nigeria has taken a significant step towards hosting the UNESCO Category II...

Xenophobic attacks: Tension rises between Nigeria and South Africa amid property damage, seizures

Tensions between Nigeria and South Africa have escalated following allegations of systematic...

Breaking: Reconsider your withdrawal, come for dialogue, WHO urges US

Few hours after US pulling out, the World Health Organisation(WHO) has expressed...

NPA, NLNG collaborate to boost Nigeria’s export capabilities

In a bold move to boost Nigeria’s export sector, the Nigerian Ports...

Trump grants TikTok 75-day reprieve, eyes 50-50 partnership with ByteDance

In a surprise move, US President Donald Trump has ordered a 75-day...

Just in: FCT CP loses son in car accident

The Federal Capital Territory (FCT) Commissioner of Police, Tunji Disu, has reportedly...

Few weeks to son’s wedding, FG’s hospital senior staff commits suicide, plungs into deep well

A tragic incident has hit the Federal Medical Centre (FMC), Idi-Aba, Abeokuta,...

14 key takeaways from Donald Trump’s inaugural speech as the 47th President of the United States:

1. The golden age begins now. The golden age of America begins...

1,500 Capitol Rioters Receive Unprecedented Pardon from Trump, Sparks Outrage

Just hours after taking office, US President Donald Trump granted pardons on...

Breaking: Trump pulls US from WHO, signs executive bill

US President Donald Trump has signed an executive order to withdraw the...

Pres. Trump reverses Biden’s Paris deal

Newly-inaugurated President Donald Trump has confirmed that he will withdraw the United...

NNPC Ltd Blames Economic Saboteurs for Buguma Wellhead Fire, Pledges to Combat Threat

The Nigerian National Petroleum Company Limited (NNPC Ltd) has pinpointed pipeline vandalism...

Inaugural Speech of Donald J. Trump, 47th. President of America

Thank you. Thank you very much, everybody. Well, thank you very, very...

Just in: Nigerian Telecom Users to Pay More as NCC Approves 50% Tariff Hike

The Nigerian Communications Commission (NCC) has granted telecom operators’ request to adjust...

Breaking: Trump vows to halt illegal immigration

Donald Trump was inaugurated as the 47th President of the United States...

Nigeria’s Presidency Shrugs Off Badenoch’s Comments, Says No Impact on Relations

The Nigerian Presidency has dismissed comments made by UK Conservative Party leader,...