Oil
BreakingHighlightOil & GasTop StoryTrending Story

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

286

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

37-year-old Australian MP allegedly drugged, sexually assaulted

Brittany Lauga, a 37-year-old member of parliament for Queensland, has reported to...

FG Unbundles Transmission Company of Nigeria

The Federal Government has announced the unbundling of the Transition Company of...

Nursing mother, her three-month-old baby, six others roasted in a Delta petrol tanker fire

In a desperate attempt to save her trapped three-month-old baby, a nursing...

Just in: EFCC: Appeal Court overturns Kogi high court order, rules against Yahaya Bello

In a contempt case filed by Kogi State Governor Yahaya Bello, the...

Shell signs agreement to build gas pipelines in Oyo State

The Oyo State Government has partnered with Shell Nigeria Gas (SNG) to...

Leisure and Travel: Tapping into the Adventures that Beckons Prt 2

You have to agree that giving your body what it needs, includes...

Pres. Tinubu to inaugurate NNPC Ltd’s three critical gas infrastructure projects

In line with his commitment to significantly leverage gas to grow the...

World Press Freedom Day: Press freedom will not be compromised, Tinubu govt assures 4th estate of the realm 

Mr. Mohammed Idris, the Minister of Information and National Orientation, has asserted...

Lagos-Calabar Costal Highway: Landmark Beach Refunds Customers After Demolition

Landmark Resort Beach’s management has initiated the refund process for customers affected...

Latest Kaduna terrorists’ attack: Vigilantes killed, two village heads, others abducted

Suspected bandits have reportedly attacked Maraban Agyaro, where they abducted the village...

Tinubu’s policies have salvaged Nigeria’s economy, money market, says VP Shettima

Vice President Kashim Shettima has said that President Bola Tinubu’s policies have...

Policeman who fatally shot man during petrol queue melee in Lagos identified, say police

The trigger-happy police officer who shot a young man, Toheeb Eniafe, at...

Gas explosion: Gas Minister visits Ogun as governor tightens truck regulations to improve road safety

The Ogun State Government is to introduce a policy that would enforce...

Security: Real-time aerial surveillance cameras, data-gathering sensors for FCT – Minister

The Minister of the Federal Capital Territory, Mr. Nyesom Wike, is set...

South-South governors back Lagos-Calabar coastal highway

The south-south governors of Bayelsa, Rivers, Cross River, Edo, and Delta states...

Suspected killer of 14-year-old Nigerian Daniel Anjorin in East London sword attack hauled up in court

Following the killing of 14-year-old Nigerian Daniel Anjorin in an east London...

London sword attack on Anjorin: 36-year-old suspect in police net

The 36-year-old suspect in the fatal London sword attack is currently being...

14-year-old Nigerian-born, Daniel Anjorin named as the victim of a sword attack in London

The 14-year-old boy killed by a sword-wielding man in Hainault, London has...

Lagos Landmark Beach demolition: FG compensates tenants, business owners

In response to mounting tension over the demolition of buildings and businesses...

Lagos gas explosion: One tragedy too many, pregnant woman, eight others seriously injured

A gas explosion in the Ajegunle-Apapa area of Lagos has left at...