West Texas Crude Oil Contract Delivered in Dec. Trading on the NIMEX was up $1.75 to close at $78.50/barrel. Brent crude oil contract Delivered in Jan. Up $2.61 to close at $82.31 a barrel.
President Joe Biden announced today that The United States will drain 50 million barrels of crude oil from its Strategic Reserves (SPR) to stem the surge in market prices.
The United States will jointly drain crude oil with the United Kingdom, China, Japan, South Korea and India, marking the first international cooperation to implement such measures.
The US Department of Energy said SPR currently has a total of 604.5 million barrels of crude oil, and the drained crude will enter the market within 13 days of the president’s order.
Citigroup previously predicted that The United States and its allies may drain a total of 100-120 million barrels of oil to the market. The United States will drain 45-60 million barrels of oil, China 30 million barrels, India 5 million barrels, Japan 10 million barrels and South Korea 10 million barrels.
However, it is expected that the measures to drain oil from reserves will affect oil prices in the market for only 2-3 weeks.
The United States is trying to convince countries to Drain the oil from the reserve. After the Organization of the Petroleum Exporting Countries (OPEC) and its allies or OPEC Plus Rejects US demands for OPEC Plus to increase oil production by more than 400,000 barrels per day.
.
