Oil prices drop as coordinated reserve release eases some supply fears
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Saturday
January 28, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
SATURDAY, JANUARY 28, 2023
Oil prices drop as coordinated reserve release eases some supply fears

Global Economy

Reuters
24 November, 2021, 09:55 am
Last modified: 24 November, 2021, 09:59 am

Related News

  • Oil heads for solid weekly gain on China demand hopes
  • Oil climbs on expected drop in Russian exports, offsets US storm impact
  • The whack-a-mole economy: US manufacturers struggle with unpredictable supplies
  • Corporate China struggles with supply snags, demand slump as Covid cases spread
  • Oil prices up amid forecasts of 2023 demand uptick

Oil prices drop as coordinated reserve release eases some supply fears

Japan will hold auctions for about 4.2 million barrels of oil out of its national stockpile, the Nikkei newspaper reported on Wednesday

Reuters
24 November, 2021, 09:55 am
Last modified: 24 November, 2021, 09:59 am
An aerial view shows Shibushi National Petroleum Stockpiling Base in Kagoshima prefecture, Japan January 18, 2019, in this photo taken by Kyodo. Photo :Reuters
An aerial view shows Shibushi National Petroleum Stockpiling Base in Kagoshima prefecture, Japan January 18, 2019, in this photo taken by Kyodo. Photo :Reuters

* API shows crude, gasoline stocks rise; distillates down -sources

* US to release 50 mln barrels of oil from strategic reserves

* Japan to release 4.2 mln barrels from reserves -Nikkei

* But Goldman says global reserves release 'a drop in the ocean'


Oil prices fell on Wednesday as the US-led coordinated release of stocks from strategic reserves eased concerns over tightness in global supply, while investors took profits from the previous day's rally ahead of the US Thanksgiving holiday.

US West Texas Intermediate (WTI) crude futures fell 12 cents, or 0.2%, to $78.38 a barrel at 0122 GMT, reversing out of a 2.3% gain in the previous day.

Brent crude futures slid 32 cents, or 0.4%, to $81.99 a barrel, having risen 3.3% on Tuesday.

"The coordinated efforts by oil consuming countries to lower crude prices prompted fresh selling," said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.

"Behind the decline is also profit-taking ahead of the US holiday," he said, adding concerns over slower demand in Europe amid a resurgence in the Covid-19 pandemic also weighed on sentiment.

The United States said on Tuesday it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude.

Japan will hold auctions for about 4.2 million barrels of oil out of its national stockpile, the Nikkei newspaper reported on Wednesday.

Adding to pressure, US crude and gasoline stocks rose last week while distillate inventories fell, according to market sources citing American Petroleum Institute figures on Tuesday.

Crude stocks rose by 2.3 million barrels for the week ended Nov. 19, against an analyst expectation of a decline by about 500,000 barrels. Gasoline inventories rose by about 600,000 barrels and distillate stocks fell by 1.5 million barrels, the data showed.

Still, some analysts said the effect on prices of the coordinated release was likely to be short-lived after years of declining investment and a strong global recovery from the Covid-19 pandemic.

The coordinated release may add about 70 million to 80 million barrels of crude supply, smaller than the more-than-100 million barrels the market has been pricing in, analysts at Goldman Sachs said.

"The threat of more supply in the short term certainly creates an artificially looser oil market for the next 1-2 month period," Louise Dickson, senior oil markets analyst at Rystad Energy, said in a report.

"However, the move by (US President) Biden and other leaders may just be pushing the supply issue down the timeline, as emptying out storage will put even further strain on already low oil stockpiles," he added. 

Top News / World+Biz

Oil price / Supply

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • The Bombay blood type: A rare blood group in urgent need of database
    The Bombay blood type: A rare blood group in urgent need of database
  • Photo: TBS
    TBS Roundtable: What lies ahead in 2023
  • Photo: TBS
    BNP demands govt's immediate resignation as road march in Dhaka begins

MOST VIEWED

  • Photo: Collected
    China differs with IMF on Sri Lanka debt moratorium
  • Oil pump jacks work at sunset near Midland, Texas, US, August 21, 2019. Picture taken August 21, 2019/ Reuters
    US House passes bill limiting drawdowns from strategic oil reserve
  • Adani Group Chairman Gautam Adani in a 2009 photo. Photo: Collected
    India's Gautam Adani: Asia's richest man in the eye of a storm
  • Illustration: Itziar Barrio
    Adani faces one of worst billionaire wipeouts with empire under siege
  • A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, US June 9, 2016. Photo :Reuters
    Oil prices settle lower on stronger supply outlook
  • A Wall Street sign outside the New York Stock Exchange in New York City, New York, U.S., October 2, 2020. REUTERS/Carlo Allegri
    Recession fears pose challenge to energy shares after stellar year

Related News

  • Oil heads for solid weekly gain on China demand hopes
  • Oil climbs on expected drop in Russian exports, offsets US storm impact
  • The whack-a-mole economy: US manufacturers struggle with unpredictable supplies
  • Corporate China struggles with supply snags, demand slump as Covid cases spread
  • Oil prices up amid forecasts of 2023 demand uptick

Features

Snipe in flight. Photo: Enam Ul Haque

Baikka Beel: 'A world where snipe work late'

32m | Panorama
Photo: Noor-A-Alam

Pet cafes: Where love for food and animals cohabit

2h | Food
Illustration: TBS

How MFS is turbocharging national economy

5h | Thoughts
Now is the time to focus on FDI composition

Now is the time to focus on FDI composition

7h | Panorama

More Videos from TBS

Gold covered mummy discovered in Egypt

Gold covered mummy discovered in Egypt

Now | TBS World
Kajol’s road paintings bring change in Gafargaon

Kajol’s road paintings bring change in Gafargaon

1d | TBS Stories
Carew & Company witnessed a remarkable growth

Carew & Company witnessed a remarkable growth

1d | TBS Stories
Gavi may have to leave Camp Nou

Gavi may have to leave Camp Nou

18h | TBS SPORTS

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Four top bankers arrested in DSA case filed by S Alam group 
Bangladesh

Four top bankers arrested in DSA case filed by S Alam group 

3
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

4
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

5
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]