Despite the intervention of China, the world’s largest importer, which has led to more supply in the market, oil has been depleted.
Brent, world crude, rose 2.06 percent to $ 72.92 a barrel on Friday. West Texas Intermediate, which tracks US grain prices, rose $ 69.72 a barrel in 2.1.2 weeks.
Although Beijing has taken raw materials from its strategic stockpile to lower prices, oil prices have risen.
The world’s second-largest economy has been forced to shut down factories in rural areas as it struggles to cope with rising energy costs for oil, coal and natural gas.
The move is aimed at “easing the pressure on raw materials,” the National Food and Strategic Storage Administration said on Thursday.
According to a UK-based consulting firm, China has one of the world’s largest strategic reserves, estimated at 220 million barrels.
The United States, the world’s largest oil and gas producer, has a gross domestic product of 727 million barrels, equivalent to 60 days of oil imports. Countries stockpile oil to meet emergencies and to defuse a tidal wave in the oil market. This is the first time Beijing has used prices as a measure to reduce prices.
Last year, the Department of Energy began buying raw materials from shale producers to help with the VV-19 crisis.
Crude prices are rising as China’s demand improves and this indicator law could tighten the oil market. He said the energy market was still buzzing with China’s bold intervention and was trying to determine if Binden’s call would lead to a more positive environment for food insecurity.
On Friday, US President Joe Biden and his Chinese counterpart Xi Jinping held their first telephone conversation in seven months to prevent a possible clash between the world’s largest economies.
Under former President Donald Trump, a trade war between Washington and Beijing was ravaged by a protracted trade war.
Oil prices were low as congressional Democrats passed legislation to combat hydrocarbons.
The oil supply market could be tightened as the council seeks to enact legislation that could impede coastal drilling. While the House may support the law to combat climate change, conservative Democrats in the Senate may be shocked by the law, ”said Mr. Moya.
According to reports, OPEC is set to lower its forecast this week.
Alongside Russian-led members, the group is gradually increasing its supply to the market as part of a historic agreement to cut production last year.
As part of the target, OPEC + plans to increase its market capitalization to 400 million barrels a day in September by 2 million BPD by the end of the year.
The group is preparing for a ministerial meeting to discuss the next supply agreement.
Updated – September 11, 2021, 1:21 p.m.