Oil falls on expected emergency crude reserve release

Oil prices edged lower on Tuesday, reversing the previous session’s gains amid talks that the U.S., Japan, and India will release crude reserves to ease prices despite the threat of weakening demand as COVID cases picked up in Europe.

The U.S. Department of Energy is anticipated to announce a mortgage of oil from the Strategic Petroleum Reserve on Tuesday, a move that will be coordinated with other countries, a source in the Biden administration disclosed.

U.S. West Texas Intermediate crude futures shed 0.6%, or 43 cents, to $76.32 per barrel at 0128 GMT.

Brent crude futures lost 0.4%, or 30 cents, to $79.40 per barrel.

Both benchmark contracts went up 1% on Monday amid reports that the Organization of the Petroleum Exporting Countries and their allies could modify their plan to increase output if large consuming countries release crude from their reserves or if the pandemic stifles demand.