Oil is Falling Amid Talk of Releasing Quantities of Strategic Reserves

Oil prices fell on Tuesday after rising in the previous session, as a result of talk that the United States, Japan, and India will release crude oil reserves to bring prices down, despite the risk of faltering demand due to the spread of coronavirus cases in Europe.

A source familiar with the administration of US President Joe Biden said that the United States is expected to announce the release of quantities of crude oil from its emergency stockpile on Tuesday as part of a plan it reached with major Asian energy consumers to reduce energy prices.

US West Texas Intermediate crude futures were down 58 cents, or 0.8 percent, at $76.17 a barrel. Brent crude futures fell 42 cents, or 0.5 percent, to $79.28 a barrel.

Both Brent and West Texas Intermediate each rose 1% on Monday as a result of reports that the Organization of the Petroleum Exporting Countries (OPEC), Russia, and their allies, called OPEC+, may adjust their plan to increase oil production if major consuming countries resort to releasing crude oil. of its reserves or if the pandemic dampens demand.