WTI crude futures remained under pressure around $76 per barrel on Tuesday amid reports the US is set to unveil a release of its emergency oil reserves in a bid to lower gasoline prices. A Reuters article revealed that the US is expected to announce on Tuesday a loan of crude oil from its emergency stockpile as part of a coordinated effort with major Asian oil consumers to lower energy prices.
This development came after Japanese and Indian officials were reportedly working on ways to release national crude oil reserves in tandem with the US and other countries. The move is also widely seen as a warning to major producers that they should increase production to address concerns of high fuel prices in powerhouse economies. Meanwhile, demand concerns continued to weigh on sentiment as coronavirus restrictions returned in European countries amid a COVID flare-up.
