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A barrel of West Texas Intermediate crude oil in January deliveries is $ 78.45, up 0.06 percent. Brent on ICE in London for January deliveries is trading at $ 82.43 a barrel, up 0.22 percent.
U.S. President Joe Biden announced on Tuesday that it would make 50 million barrels of strategic reserve (SWP) oil available as part of an agreement with a number of other countries, including China and India.
The White House announced that it would reach 50 million of the 600 million barrels of oil from the US Strategic Reserve (SPR).
Even before the announcement of the decision to release oil from the SPR, the OPEC + alliance warned that such action was not justified in the current market conditions.
The OPEC + countries are to meet on December 1-2 to consider whether they will increase oil supplies in January 2022 by 400,000. barrels a day.
Already, some delegates to this meeting are saying that the release of oil from reserves in several countries may cause OPEC + to refrain from increasing its oil supply in the first month of the new year.
The OPEC + advisory body estimates that the surplus of oil in the markets in January and February 2022 will increase by 1.1 million barrels per day and will amount to 2.3 million and 3.7 million, respectively, if the market hits the market as part of the coordinated action of several countries 66 million barrels of oil.
Analysts so far have “mixed” forecasts as to what OPEC + will do.
Citigroup Inc. estimates that the alliance countries will stick to their current plans to increase the supply of crude oil by 400,000 barrels every month.
In turn, strategists from the Bank of Australia & New Zealand Group. expect that OPEC + will postpone the increase in supplies in January. “I expect oil prices to move in a narrow range until the next OPEC + meeting,” says Suvro Sarkar, energy markets analyst at DBS Bank Ltd.
“The plan for the coordinated release of oil from reserves has turned out to be less worrying than assessed and will not fundamentally change the picture of supply and demand,” he added.
Copper prices on the London metal exchange are close to the levels from the previous session. Metal in 3-month deliveries is priced at the LME close to USD 9,835.00 per ton, the brokers inform.
At Comex in New York, copper is more expensive by 0.59 percent. to $ 4.4790 per pound. On Wednesday, metal increased by 1.1 percent on Comex. Metal market analysts estimate that industrial metals, including copper, could “catch the wind” next year as Chinese government infrastructure plans should support quotes, although launching new projects will take some time.
According to experts, Beijing will, as usual, use its proven scheme of supporting a weakening economy by increasing investment in infrastructure, and Chinese fiscal policy will play a greater role in “fueling” economic growth next year. At the end of the previous session, copper on the LME gained $ 124 at $ 9,835.00 per ton.