WTI Crude Oil Extends Losses as US Tries to Rope in Other Nations to Tap SPRs

WTI crude oil continues its descend on reports that not only is the US planning to tap into its strategic reserves but is also asking other

Written by: Aiswarya Gopan • Thursday, November 18, 2021 • 2 min read

• Last updated: Thursday, November 18, 2021

WTI Crude Oil Extends Losses as US Tries to Rope in Other Nations to Tap SPRs

WTI crude oil continues its descend on reports that not only is the US planning to tap into its strategic reserves but is also asking other key energy consumers, such as China, India and Japan, to follow suit in a bid to coordinate efforts in bringing down oil prices. At the time of writing, WTI crude oil is trading at around $77.54 per barrel.

According to an exclusive Reuters news report, the Biden administration has asked other leading economies to partner on releasing crude stockpiles to pump up oil supply and drive down prices of the commodity. The move also indicates a possible build-up of tensions between the US and OPEC after the leading oil producers’ group failed to comply with President Joe Biden’s request to ramp up crude production to bring down soaring energy costs. Rising commodity costs are posing a challenge to economies as they try to recover from the coronavirus crisis.

Crude oil prices are also sliding lower after the International Energy Agency (IEA) and the OPEC cautioned about possible oversupply in international markets as more countries, especially across Europe, impose lockdowns and restrictions to tackle the latest outbreak of COVID-19. Recently, the OPEC slashed oil demand forecasts for the current quarter on account of reigning uncertainties driven by the pandemic, hurting the sentiment among oil traders.

USOIL

The bearish moves in WTI oil were limited following the release of the EIA report in the previous session which revealed a drawdown of 2.1 million barrels in crude stockpiles across the US. Economists had forecast a build-up of inventories by 1.4 million barrels instead for the previous week.

However, investors are closely monitoring the spike in COVID-19 infections across Europe and China for updates on further lockdowns and restrictions which could hurt oil demand. If more countries announce such measures, oil demand could decline further and exert downward pressure on oil prices in international markets in the short term.

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ABOUT THE AUTHOR See More

Aiswarya Gopan

Financial Writer & Editor - Asia & Europe Desk

Aiswarya Gopan is a financial journalist, editor, and content strategist with more than 19 years of experience across financial markets, fintech, blockchain, and technology. She has worked with leading cryptocurrency exchanges, including BingX and KuCoin, driving content strategy, market research, and editorial initiatives covering digital assets, DeFi, Web3, and global financial markets. Drawing on a background in cybersecurity, technology journalism, and market research, Aiswarya specializes in translating complex financial and blockchain developments into clear, timely insights. At FX Leaders, she covers cryptocurrency, stocks, forex, and macroeconomic developments across the Asian and European trading sessions.