Opinion: November 22, 2021. What Will Oil Prices do In the Following Weeks?

In the past month the price of oil has been falling from $85 US$ for the barrel of WTI Crude to US$ 76. One of the reasons is the real possibility that the US government will release oil from Strategic Petroleum Reserve (SPR) as a measure to control the energy prices which threaten to increase for the winter.

This measure will certainly decrease the price of oil and other fossil fuels. However, it has to go hand in hand with the OPEC+ countries not reducing the oil output. If OPEC+ reduces the output the price decrease for oil would be transitory. In order to achieve a more robust increase in supply, the US government is trying the secure other countries SPR releases.

The price of oil depends on many factors so the sum of all of them, according to the different countries' self interest will determine the oil price. For further reading, read this article

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.