On Thursday, US oil prices continue falling as the US is considering orchestrating a coordinated release of its oil reserves to lower prices.
By 01.35 GMT, US crude slipped by 0.8% or 62 cents to USD77.74/barrel after falling by 3% overnight. Brent crude dipped by 0.5% to USD79.89/barrel following its plunge of 2.6% on Wednesday.
A report surfaces that the US was asking big oil consumers including China and Japan to coordinate a release of oil reserves, aiming to shock the market. However, it produces political backlash instead as the bid put inflationary pressures on the market struggling to recover from the coronavirus crisis.
Citigroup noted that the possible move could send a strong political sign but it would be less likely to give the US domestic refineries an extra benefit as the light-end yields of margins for fuel production appears to have been already peaked.
So far, US producers have been reluctant to overspend on drilling as they have felt the negative impact of raging debt to pay for new drills.
