Oil has fallen on the expected deal to hit gross emergency reserves by Reuters

By the hand of Sonali Paul

MELBOURNE (Reuters) – Oil prices fell on Tuesday, reversing gains in the previous session as a growing debate between the US, Japan and India led to the release of crude reserves to ease prices, despite the loss of demand as COVID-19 cases erupt in Europe as. .

The U.S. Department of Energy will announce an oil loan from the Strategic Oil Reserve on Tuesday and coordinate with other countries, a source in the Biden administration said is aware of the situation.

US futures for West Texas Intermediate (WTI) fell 43 cents or 0.6% to $ 76.32 a barrel at 0128 GMT.

futures fell 30 cents, or 0.4%, to $ 79.40 a barrel.

Brent and WTI both rose 1% on Monday as the Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, jointly called OPEC +, could adjust their plan to boost oil production if large consumers release crude from their reserves or. if the pandemic lowers demand.

With a crude coordinated release that has managed to bring the price of a barrel back below $ 80 and a real release expected to have a temporary effect, analysts are looking at the blow that a fourth wave of COVID-19 cases could demand. Europe.

“As Europe, and especially Eastern Europe, is struggling to stop the spread of COVID-19, there is a high risk of blockade-like measures,” said Louise Dickson, an analyst at Rystad Energy.

He said demand for European roads and aircraft fuel in November is expected to fall to 7.8 million barrels per day (bpd) from 8.1 million bpd in October, although part of that is a normal decline for this time of year.

“If a new wave of blockchain is established in Europe, oil prices will not be saved during the Northern Hemisphere flu season,” Dickson said in comments in an email.