International Oil Prices Rebound 6% After Plunge... 'Expectations of US Government Intervention(?)'

[Asia Economy Reporter Naju-seok] On the 10th, international oil prices are showing a rebound of over 6%. This appears to be partly due to expectations of U.S. intervention.

On this day, West Texas Intermediate (WTI) crude oil traded at $33.16, up 6.5% from the previous day, and Brent crude rose 7.1% to $36.81.

The previous day, WTI plunged 24.6% and Brent fell 24.1%, dropping to their lowest levels in four years.

[Image source=Reuters Yonhap News]

The initial rebound in oil prices is largely due to the sharp decline the day before and the U.S. government's statement that it will monitor the oil market.

The U.S. Department of Energy recently announced its intention to monitor market conditions amid the recent oil price decline.

The U.S. Department of Energy stated, "Attempts by several countries to disrupt and shock the international oil market reaffirm the importance of the United States' role as an oil seller," adding, "As the world's largest producer of oil and natural gas, the United States can and will respond to this market volatility." It further said, "The U.S. unconventional oil and natural gas industry (shale) will make the market more stable and resilient."

The international oil market plunged the previous day after oil-producing countries failed to reach a production cut agreement, and Saudi Arabia suddenly announced plans to increase production. Initially, Saudi Arabia intended to reduce daily oil production by 1.5 million barrels due to decreased international oil demand related to the COVID-19 response. However, after failing to secure production cuts due to Russia's opposition, Saudi Arabia announced its intention to increase oil production.

This content was produced with the assistance of AI translation services.