London — Thursday’s oil prices plummeted as the United States said it was considering selling oil from strategic stockpiles and Russia was ready to stabilize its natural gas market, the last session Increased losses from.
Brent crude oil prices fell $ 1.24 (1.5%) to $ 79.84 a barrel by 0918 Greenwich Mean Time, after falling to a session low of $ 79.08 GMT. WTI crude oil futures reached the session’s low of $ 74.96, down $ 1.69 (2.2%) to $ 75.74 a barrel.
Both contracts fell about 2 percent on Wednesday.
UBS analyst Giovanni Staunovo said, “If the United States leverages its strategic crude oil reserves, the oil market could be tight, and if Russia could send natural gas to Europe, it would go from natural gas to crude oil. There may be less alternative to. “
According to the Financial Times, US Secretary of Energy Jennifer Granholm said the government is considering using the country’s Strategic Petroleum Reserve (SPR) to curb soaring gasoline prices.
Granholm also did not rule out the ban on crude oil exports that was lifted in 2015.
Goldman Sachs said the release of the SPR, which could reach up to 60 million barrels, would only pose a $ 3 downside risk against the year-end Brent price forecast of $ 90 / barrel.
Unexpected declines in US crude oil inventories last week also weighed on prices.
Stock prices rose 2.3 million barrels, contrary to expectations of a modest fall of 418,000 barrels, according to the US Energy Information Administration.
Russian President Vladimir Putin said on Wednesday that Russia is increasing its gas supply to Europe, including via Ukraine, in response to the energy crisis and is ready to stabilize its market amid rising prices.
Such moves can help cool record high gas prices.
Analysts say these gas prices could impact the already tight oil market as some users switch to oil as winter approaches.
Earlier this week, the Organization of Petroleum Exporting Countries (OPEC +) agreed to stick to plans to raise production at 400,000 barrels per day in November and raise oil prices to their highest levels in years.
By Ahmad Ghaddar