TOKYO (Reuters) – Oil prices fell on Thursday, adding to an overnight plunge as China said it was moving to release reserves following a Reuters report that the United States was asking big crude consumers to consider a coordinated release of stocks to lower prices.The bid by the US administration to shock markets comes as inflationary pressures, partly driven by surging energy prices, starts to produce political backlash, as the world fitfully recovers from the worst health crisis in a century.
US crude was down 84 cents, or 1.1%, at $77.52 a barrel by 03:48 GMT, having fallen 3% overnight. Brent crude fell 44 cents, or 0.6%, to $79.84 a barrel after falling 2.6% to the lowest close since early October on Wednesday.Prices hit seven-year highs last month as the market focused on the swift rise in demand that has come with lockdowns being lifted and economies recovering against a slow increase in supply from the Organization of the Petroleum Exporting Countries (OPEC) and its allies, called OPEC+.
“But … domestic refineries are unlikely to get an extra benefit, as light-end yields appear to have been already maxed out,” they added, referring to margins for producing gasoline and other motor fuels.US producers have also been reluctant to overspend on drilling after they were punished by investors for gorging on debt to pay for new drills.
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