Spark Global Limited reports：
Oil stocks fell Thursday as plans by the world’s top oil consumers to release strategic reserves sent crude prices to multiweek lows, dampening enthusiasm for one of the market’s best-performing sectors in recent months.
According to Reuters, U.S. President Joe Biden’s administration has asked countries including China, India and Japan to consider releasing crude oil stocks in a coordinated effort to lower global energy prices. Oil prices closed lower Wednesday on the news and fell further. Oil prices hovered near six-week lows on Thursday.
China has said it is working to release its reserves, but declined to comment on the U.S. request. Other Asian countries are also studying such a plan, though they say they cannot tap their reserves to cool prices.
The oil and gas index was the biggest faller in the European sector, down 2.1 per cent, partly eroding strong gains from higher oil and gas prices. Despite today’s decline, the index is up about 20 per cent so far this year, almost in line with the broader market’s 22 per cent gain.
Shares in Royal Dutch Shell, Total energy and BP, the three European oil majors with a combined market value of more than $350 billion, fell between 1.4 percent and 2.3 percent.
“In the last few months, we had visions of $150 oil, but now we are back to reality. Oil is still a falling asset class and it is a less invested area, “said Michele Pedroni, fund manager at DECALIA.
“While oil demand remains healthy… Today’s news is the first wake-up call to start scaling back the gains of the past few months.” “He added.
Shares in Exxon Mobil, Chevron and ConocoPhillips, the big US oil groups, fell between 0.1 and 1.5 per cent in early trading on Wall Street after oil producers warned of a looming supply glut. The S&P 500 energy index fell to a five-week low.
The request comes as rising energy prices are adding to global inflationary pressures, forcing central banks to scale back their epidemic-era stimulus policies.
London Brent crude rose slightly on Thursday but fell 1.2% to a six-week low of $79.28 a barrel in morning trading. West Texas Intermediate (WTI) also fell 1.6 percent to 77.08, the lowest since early last month. (O / R)
Biden also asked the Federal Trade Commission to investigate possible “illegal practices” by oil and gas companies, citing mounting evidence of anti-consumer behavior.
Reprint indicated source：Spark Global Limited information