WTI crude fell nearly 2.7 percent on fears of a surplus in the first quarter of next year.

by Gina Lee

Investing.com – Oil prices fell on Friday morning in Asia, down more than 1% on fears that US-led crude reserves could stagnate. Among major consumers, this could result in a global supply surplus in the first quarter of 2022.

It was down 2.02% to 80.56 by 10:57 AM ET (3:57 GMT), and WTI crude futures were down 2.56% to $76.35. WTI crude oil prices were not announced today. Because Thursday is a holiday in the United States.

The announcement of the adoption of oil reserves from the SPR was made by US President Joe Biden earlier this week. It shows that millions of barrels of oil are being released in coordination with other consumer countries, including China, India and Japan.

The announcement is likely to lead to an increase in supply over the coming months. According to research by the Economic Commission (ECB) that advises the Organization of Petroleum Exporting Countries (OPEC), OPEC sources told Reuters.

The committee also expects an oil surplus of 400,000 barrels per day (bpd) in December 2021 to rise to 2.3 million bpd in January 2022 and 3.7 million bpd in February if consumer countries go ahead with adoption. Such oil is used The source added

Rising surpluses forecasts weigh on the outlook for the next OPEC and Allies (OPEC+) meeting on Dec. 2.

However, both Brent and WTI crude are heading towards weekly positive territory for the first time in nearly a month. Total crude oil reserves released are about 70 million to 80 million barrels, less than expected.

“Since the quantity is small I think it aims to reduce supply tightness. instead of having a significant impact on the oil market,” Sutomu Sukimori, president of the Japan Petroleum Association, told media on Thursday.