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WTI gains, Brent firm as US releases less oil than expected

By Fitri Wulandari

05:01, 24 November 2021

Ticker for WTI and Brent crude oil futures
Ticker for WTI and Brent crude oil futures - Photo: Shutterstock

US crude oil futures rose on Wednesday in Asia after the US’ announcement on the oil reserve release did not meet market expectations. Brent crude oil edged lower but remained at the $82 level.

West Texas Intermediate (WTI) gained 0.04% to $78.53 per barrel, while the international benchmark Brent crude oil dropped 0.11% to $82.22/bbl.

Brent crude oil closed up more than 3% to $82.31 and WTI ended 2.2% higher on Tuesday at $78.50/bbl on Tuesday after President Joe Biden on Tuesday announced the US will release 50 million barrels of oil from the Strategic Petroleum Reserve (SPR) to tame high energy prices.

Less severe

“Crude oil gained after a plan to release inventories from reserves was seen as less severe than expected,” analysts at ANZ Research wrote in a note on Wednesday.

Both oil futures dropped to below $80 last week as uncertainty about the SPR release kept markets on the edge.

Oil - Crude

71.41 Price
+2.320% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee -0.0015%
Overnight fee time 22:00 (UTC)
Spread 0.030

Oil - Brent

75.98 Price
+2.030% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee -0.0045%
Overnight fee time 22:00 (UTC)
Spread 0.045

Natural Gas

2.52 Price
-0.450% 1D Chg, %
Long position overnight fee 0.0980%
Short position overnight fee -0.1199%
Overnight fee time 22:00 (UTC)
Spread 0.0050


23.02 Price
-3.350% 1D Chg, %
Long position overnight fee -0.0204%
Short position overnight fee 0.0122%
Overnight fee time 22:00 (UTC)
Spread 0.020

US’ oil reserve release will be in coordination with the oil reserve release by China, India, South Korea, the UK and Japan. According to ANZ Research, India will release five million barrels; China 7.3 million and smaller amounts are also expected from South Korea and the UK.

OPEC retaliation

However, analysts warned that the action by US and key consuming nations may ignite retaliation from the Saudi Arabia-led Organization of Petroleum Exporting Countries (OPEC).

ING Group in a note on Tuesday, prior to the US announcement, said the resurgence of Covid-19 in Europe coupled with a potential release may be reason enough for OPEC to decide against a production hike of 400,000 barrels per day in its monthly meeting early December.

“The prospect of retaliation from OPEC+ (OPEC and its allies) does leave the potential for further volatility in oil markets,” the group said.

Read more: Oil prices rise despite release of reserves: Here’s why

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
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