Oil trims losses on reports of US refilling reserves

Oil drilling rigs

Oil prices trimmed their losses on close today, Sept. 13, after reports about the United States considering refilling the strategic reserve and following the release of inflation data.

The Joe Biden administration is considering buying oil in the event that it falls below $80 a barrel to refill the strategic crude reserve, Bloomberg reported, citing US officials.

Oil prices fell sharply earlier in the day, with a strong decline in the stock market and a rise in the dollar by more than 1% after inflation data came above expectations.

Data showed that the consumer price index in the US rose 8.3% in August on an annual basis, compared to 8.5% in July, but it is higher than expectations of 8.1%, which indicates the possibility of continuing the policy of raising US interest rates strongly during the coming period.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) announced in its monthly report that it fixed its forecasts for the growth in oil demand during the current and next years at 3.1 and 2.7 million barrels, respectively.

US Secretary of State Anthony Blinken has stated that the US and Iran are unlikely to reach a new agreement anytime soon, threatening continued sanctions against Iranian oil exports.

In terms of trading, Brent crude declined by 0.9%, or 83 cents, to close at $93.17 a barrel. WTI crude also fell 0.5%, or 47 cents, to $87.31 a barrel.