Brent crude recorded a further rise at $81.10 a barrel, despite the decision of US President Joe Biden to withdraw 50 million barrels of strategic stocks of the United States of America.
The global benchmark Brent crude contracts had ended previous trading, up 81 cents, or 1%, to record at a settlement of $79.70 a barrel.
Dr. Anas Al-Hajji, editorial advisor at the “Energy” platform specialized in energy markets, said in an interview with “Al-Arabiya” that the objectives of the decision are divided into two parts, the first is economic due to the American voter’s annoyance about the rise in gasoline prices, and therefore Biden is trying to satisfy this voter, “I still believe that In all cases, it is related to Iran in the political aspect.”
Al-Hajji explained that the rise in prices was not surprising despite the announcement of the release of stocks, because the withdrawal from the reserves will be at the rate of 32 million barrels, “which is just a loan or debt to companies, and they have to return it within 6 months, and this means that they will buy from the market, and this demand is additional to the market, and perhaps In the future, there will be a scarcity of supplies, and therefore companies may not buy an amount that affects prices, and this indicates a weak impact of the decision on the issue of calming prices.”
Al-Hajji considered that the American desire to compensate for Iranian oil is strongly behind this decision, because the release of stockpiles came on the recommendation of a strong security advisor, and the countries that were asked to release stockpiles also refer to the relationship with Iran.
Regarding the remaining 18 million barrels out of the 50 million barrels, Al-Hajji said that it would be “a foregone conclusion according to a previous decision taken since 2015, but Biden accelerated this withdrawal from stocks at the present time.”
For his part, the oil expert, Kamel Al-Harami, said in an interview with Al-Arabiya that “the decision is not sound, and it is inappropriate to insist on interfering in a market of a commercial nature.”
He explained that the OPEC + group has sought, over the previous periods, to support the market balance through a clear-cut plan, which carries a balance that ensures the sustainability of supplies.
CMarkits London CEO, Dr. Yousef Al-Shammari, described in an interview with Al Arabiya. The step of withdrawing from unsustainable reservesIn the long run, it will be difficult to build stocks in later stages at competitive prices.
US West Texas Intermediate crude contracts also rose 81 cents, or 1%, to settle at $76.75 a barrel.
This comes at a time when OPEC Plus indicated that withdrawing from strategic reserves is not justified given the current market situation.
And OPEC Plus warned against reconsidering the decision to increase supplies by 400,000 barrels per day, on a monthly basis, according to its previous agreement, if the reserves were withdrawn, knowing that its next meeting will be on the second of December.
These moves in the oil markets come at a time when fears are increasing about the repercussions of the recent wave of the Corona virus in America and Europe, which threatens global demand for energy.
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