Oil down as China releases fuel from reserves

ANKARA – Oil prices declined on Monday with the easing of the global supply crisis after China announced the sale of its gasoline and diesel reserves.

International benchmark Brent crude was trading at USD83.45 per barrel at 0625 GMT for a 0.32% percent decrease after closing the previous session at USD83.72 a barrel.

American benchmark West Texas Intermediate (WTI) traded at USD83.11 a barrel at the same time for a 0.55 percent fall after ending the previous session at USD83.57 per barrel.

Price slumps emerged when the world’s largest oil consumer, China, said it released gasoline and diesel reserves to improve market supply and support price stability in some regions.

The National Food and Strategic Reserves Administration said the reserves were released in response to the recent supply and demand dynamics on the local oil product market.

Investors are now keeping tabs on Thursday’s meeting of the OPEC+ group. However, the cartel is expected to keep its monthly strategy of boosting output by 400,000 barrels per day.

To pressure the OPEC+ group, US President Joe Biden urged G20 energy-producing countries with spare capacity to increase output for a better global economic recovery.

Iraqi Oil Minister Ihsan Jabbar Ismaael had said in a statement on Saturday that along with increased demand for energy, “Iraq believes that OPEC+ plan to boost output by 400,000 barrel per month is enough to cope with the demand and to ensure the market stability.” (Anadolu)



Source: Business Diary Philippines

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