America intends to sell 32 million barrels of oil as part of the reserve withdrawal plan

The US Department of Energy has announced that it will sell 32 million barrels of strategic oil reserves for delivery between late December and April 2022.

The ministry plans to release another 18 million barrels soon. Traders are also considering whether China will follow through on its plans to free oil from its reserves.

Oil prices stabilized on Thursday, with investors in expecting how major producers will respond to the US-led oil emergency declaration aimed at calming the market, as OPEC predicts that increased production will increase inventories for now.

THE future on Brent crude oil rose by seven cents to 82.32 dollars a barrel, while i future US West Texas intermediate crude fell 12 cents, or 0.2%, to $ 78.27 a barrel.

An OPEC source told Reuters that the organization expects the US release of strategic oil stocks will lead to oil market surplus inflation of 1.1 million barrels per day.

A meeting with OPEC Plus is scheduled for December 1st and 2nd to define the policy of the alliance in matter of oil production.

“The bold move by oil importers has opened the doors for OPEC Plus to adjust its sourcing policy downward at its next (meeting) December 2, 2021,” said Rystad Energy analyst Louise Dixon.

The OPEC Plus alliance has added 400,000 barrels per day of supply since August, reversing production cuts record carried out last year when pandemic restrictions hampered demand.

Three sources told Reuters that OPEC Plus will not discuss temporarily halting increases in oil production, despite decisions by the United States, Japan, India and other countries to release emergency oil stocks.

For their part, the UAE and Kuwait, two OPEC members, said they are fully committed to the OPEC Plus agreement and have no preposition before next week’s meeting.

Meanwhile, Iraq said it supports the continuation of the current OPEC Plus plan to increase production by 400,000 barrels per day per month, saying the outlook for the oil market is unclear due to turmoil in global markets.

The rise in the price of oil has heightened fears of inflation. Goldman Sachs analysts said the coordinated release could add around 70-80 million barrels of crude oil to the market.

Data from the US Energy Information Administration on Wednesday showed that gasoline and spirits inventories fell more than expected, while crude oil inventories rose.

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