Oil prices under pressure from both supply and demand factors


Oil prices came off seven-week lows on Monday but remained under pressure after Japan said it was considering releasing oil reserves.

Brent lost 26 cents to $78 a barrel and U.S. West Texas Intermediate (WTI) crude futures were down 12 cents at $75 a barrel.

Meanwhile, WTI and Brent prices hit their lowest since Oct. 1 earlier in the session as they both slumped around 3% on Friday, declining for the fourth straight week for the first time since March 2020.

Japanese Prime Minister Fumio Kishida signalled on Saturday he was ready to help combat soaring oil prices following a request from the United States to release oil from its emergency stockpile, in an unprecedented move.

Tokyo is exploring ways to bypass a law that permits the release of oil reserves only in cases of supply shortage or natural disasters.

The White House on Friday pressed the OPEC producer group again to maintain adequate global supply, days after U.S. discussions with some of the world`s biggest economies over potentially releasing oil from strategic reserves to quell high energy prices.

According to analysts, the combined SPR release could be 100 million to 120 million barrels or even higher, this includes 45 million to 60 million barrels from the United States, about 30 million barrels from China, 5 million barrels from India and 10 million barrels each from Japan and South Korea, the bank estimated



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