Oil: Profits of around 1% against the background of the coordinated release of stocks

Recovery for oil prices on Thursday, which moved away from the 6-week low recorded at yesterday’s meeting.

US crude futures have fallen from their recent highs as traders appear to have “costed” the impact of a possible coordinated oil release from US and China strategic reserves, said Edward Moya, an Oanda analyst.

However, “the oil market deficit will be here even if stocks are used up and the next big price move will probably depend on the weather,” he added.

China has responded positively to the US call to release some crude oil from its strategic reserves in order to de-escalate international energy costs.

The presidents of the two countries, Xi Jinping and Joe Biden, respectively, discussed the benefits of such a joint move in their teleconference on Monday, with Beijing’s decision being seen as a victory for the US campaign to reduce international prices.

Washington has approached, with the exception of China, India and South Korea for similar moves, as the OPEC + cartel, led by Saudi Arabia and Russia, has refused to increase production as demanded by the Americans, according to the Bloomberg agency.

“A coordinated approach would certainly have a greater impact on the oil market than if the US had taken this path on its own,” said Carsten Fritsch, a commodity analyst at Commerzbank.

International oil prices have soared by more than 50% since the beginning of 2021, contributing significantly to rising inflation as the international economy recovers from the shock of the Covid-19 pandemic.

In this climate, the West Texas Intermediate December delivery added 65 cents, or 0.8%, to settle at $ 79.01 a barrel on the New York Mercantile Exchange.

The Brent oil January delivery rose 96 cents, or 1.2 percent, to $ 81.24 a barrel.