World oil prices bounced up from two-week low

Crude oil turned higher on concerns that the upcoming round of EU sanctions on Russian oil will make the market even tighter.

Per barrel of WTI is now up 1.6%, to $84.17. Brent crude rose 1% to $91.

Yesterday, the price of WTI oil fell 3%, while Brent oil lost 1.7%. The reason is the news that the US will sell more oil from the strategic reserve, to keep fuel prices down before the midterm elections next month. In addition, the world is also concerned that fuel demand in China will go down, because the country still maintains the Zero Covid policy.

The EU's ban on Russian oil imports will take effect in early December. This could shake the global oil market. Currently, Indian refiners have stopped buying in the spot market.

US officials plan to sell 15 million barrels of oil from the strategic reserve. The country may consider selling more in the winter. This is the end of the barrel sale in the 180 million barrel discharge program that the White House announced earlier this year. They also plan to refill their stockpile by buying when WTI is at $67-$72.

This quarter, crude oil prices rebounded after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided to reduce production by 2 million barrels a day from November. oil price recovered to 100 USD, inflation was difficult to cool down, and at the same time helped Russia increase revenue while the US was more confused. Meanwhile, OPEC+ explained this decision as due to the risk of a global recession.