Crude oil contracts continued to decline. following the news that The United States is preparing to drain its strategic reserves (SPR) to curb the surge in market prices. Data from Bloomberg reported at 10:11 p.m. time, West Texas Intermediate (WTI) crude oil contracts for November delivery. It traded on the NYMEX minus $2.63, or 3.088%, to $82.83 a barrel. Brent crude oil dropped $2.19, or 2.39 percent, to $89.43 a barrel.
Earlier, US President Joe Biden was reported to have announced plans to drain oil from SPR reserves this week to curb the surge in oil prices. As the deadline for US midterm elections on Nov. 8 comes, Biden’s decision has been made. After the Organization of the Petroleum Exporting Countries (OPEC) and its allies or OPEC Plus There was a resolution to cut production in a big way at the beginning of this month. Against US demand, Biden is expected to announce 14 million barrels of oil from SPR this week. After he announced in March he would drain 180 million barrels of oil in May-Oct.
In addition, oil prices have been pressured by concerns that The acceleration of interest rate hikes by the Federal Reserve (Fed) and central banks around the world. will cause the economy to face a recession and affect the demand for oil
Investors will keep an eye on the American Petroleum Institute (API)’s release of US crude inventories today, while the US Federal Energy Information Administration (EIA) will release it tomorrow. Analysts expected US crude inventories to increase last week.
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