However, analysts noted that the effect on prices is likely to be short-lived, after years of declining investment and a strong global recovery from the COVID-19 pandemic.
Brent futures rose $ 2.61, or 3.3%, to $ 82.31, while US crude West Texas Intermediate (WTI) was up $ 1.75, or 2.3%, to 78, 50 dollars.
It was Brent’s biggest daily percentage gain since August and its biggest close since Nov. 16. It also pushed Brent’s premium over WTI to its highest since mid-October.
Talks for the coordinated release of reserves, the strength of the dollar and the possible impact on energy demand from a fourth wave of COVID-19 cases in Europe have already seen Brent fall more than 10% from a high of three. years of $ 86.70 recorded on October 25.
The administration of President Joe Biden said it would release 50 million barrels of the United States’ Strategic Petroleum Reserve (SPR), which will begin to hit the market in mid to late December.
“The coordinated release of the SPR (reserves) was lower than expected and will undoubtedly be answered by lower production from OPEC +,” said Edward Moya, senior market analyst at OANDA, noting that “no one would be surprised that (OPEC +) reduced its production plans. “
The OPEC + alliance between the Organization of the Petroleum Exporting Countries and its allies, including Russia, has so far rejected repeated requests from Washington to pump more oil.
UAE Energy Minister Suhail Al-Mazrouei said on Tuesday that he saw “no logic” in increasing his own contributions to the markets at this time, and that the technical data collected pointed to an oil surplus in the first quarter of 2022.
Source From: Ambito
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