Oil prices rose on Wednesday (19), as caution about tightening supply offset the negative impact of uncertain demand and news that the United States will release more oil from its reserves.
Brent crude futures for December settlement rose $2.38, or 2.6%, to trade at $92.41 a barrel.
US crude (WTI) for November, which expires on Thursday, closed at $85.55 a barrel, up $2.73, or 3.3%.
“Realistically, an SPR (Strategic Oil Reserve) launch is bearish in the short term, bullish in the long term, because eventually you have to buy it back,” said Gary Cunningham, director of market research. from Tradition Energy.
“Overall, the market continues to fluctuate wildly and loop on erratic news.”
In the previous session, benchmark prices hit a two-week low after US President Joe Biden said he plans to release 15 million barrels of oil from the SPR.
Biden, in comments on Wednesday, pointed to US plans to buy back oil at a later date if prices fall far enough. The release of the reserve would be the last sale of the planned sale of 180 million barrels of oil announced shortly after Russia invaded Ukraine in February.
Oil prices have risen since the Organization of the Petroleum Exporting Countries agreed to reduce its production target by around 2 million barrels a day – although this is expected to allow only around 1 million barrels of real decline in production.
(Additional reporting by Stephanie Kelly)
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
