Oil prices decreased on Friday, with traders focusing on how producers of the Organization of Petroleum Exporting Countries and allies (OPEC+) will react at their upcoming meeting next week to the US move of releasing oil from strategic oil reserves to curtail rising fuel prices.
International benchmark Brent crude was trading at $80.22 per barrel at 0619 GMT for a 2.43% decrease after closing the previous session at $82.22 a barrel.
American benchmark West Texas Intermediate (WTI) was at $75.98 per barrel at the same time for a 3.07% loss after trade ended at $78.39 a barrel in the previous session.
On Thursday, Dec. 2, OPEC and its allies, also known as OPEC+, will hold their next meeting in which the group will decide how much oil to pump in January.
The meeting will come one week after the US initiative to release oil from its Strategic Petroleum Reserves (SPR) to abate rising energy prices in the US and elsewhere.
Along with the plan for the US to release 50 million barrels from reserves, the US administration called on China, India, Japan, South Korea and the UK to also tap their reserves.
While India announced its support for the joint move through a release of 5 million barrels, the UK called on private oil companies to voluntarily sell oil from their emergency reserves, which would total 1.5 million barrels.
Although there are uncertainties regarding the contribution of China, Japan and South Korea, the combined reserve sales from all countries so far are estimated at around 71.5 million barrels.
While some experts say the amount is not enough to impart long-term price pressure, Goldman Sach said the reports about SPR sales, which had been circulating for a while, ensured that the market has already priced the sales in the market.
-COVID-19-related demand worries pressure prices
Rising covid cases in European countries and reports on the emergence of new variants, specifically the highly mutated variant from South Africa, are also putting pressure on oil prices, fueling concerns that the new variant may negatively affect the global economic recovery.
British Health Secretary Sajid Javid said on Thursday that flights from South Africa and five other countries will be suspended from Friday midday due to the new variant, known as B.1.1.529.
'This is the most significant variant we have encountered to date and urgent research is underway to learn more about its transmissibility, severity and vaccine-susceptibility,” said Jenny Harries, the chief executive of the UK's Health Security Agency (UKHSA).
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr