Crude oil futures rose last night (Nov. 23) on expectations that OPEC+ may suspend plans to increase production after the United States and its allies announced plans to draw oil from reserves.
WTI crude futures were up $1.75, or 2.3%, at $78.50 a barrel.
BRENT crude futures were up $2.61, or 3.3%, at $82.31 a barrel.
Analysts expect OPEC+ to suspend plans to increase oil production by 400,000 barrels per day in December. This statement comes after the U.S. and its allies announced they would release oil from their strategic oil reserves.
The United States will drain 50 million barrels of crude oil from its Strategic Reserves (SPR) to absorb the rise in oil prices on the market. The Indian government announced the withdrawal of 5 million barrels of crude oil. Other countries, including the United Kingdom, China, Japan, South Korea, and India, will also cooperate.
According to the U.S. Department of Energy, the SPR currently contains a total of 604.5 million barrels of crude oil, and the projected amount will come to market within 13 days.
Investors are paying attention to the U.S. Energy Information Administration’s (EIA) weekly report on U.S. oil inventories released today.
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Wednesday, November 24, 2021