Jessica Jaganathan

SINGAPORE (Reuters – After falling during the previous session, oil prices held steady on Thursday. This was due to rising American inflation and the possibility that the government will release additional strategic crude stocks to reduce prices.

After reports that U.S. inflation rose at the highest rate in 30 year, Wednesday’s futures plunged by 2.5%, and West Texas Intermediate (WTI), futures plummeted by 3.3%, WTI futures dropped by 3.3%, and the U.S. – the largest oil consumer – saw its crude inventory rise after some strategic reserves were released by the government.

Brent crude futures increased 18 cents or 0.2% to $82.82 per barrel at 0156 GMT. WTI futures advanced 17 cents or 0.2% to $81.51.

On Wednesday, U.S. consumer inflation data showed that prices rose at 6.2% annually. Expectations that the White House will take action to reduce rising prices and the U.S. Federal Reserve may result in a higher interest rate and tighter monetary policies led to the dollar’s rise. Oil trades in inverse relation to the dollar.

U.S. President Joe Biden claimed that he had asked the National Economic Council for help to decrease energy costs, and the Federal Trade Commission for assistance in reversing inflation by pushing back against market manipulation in energy sectors.

One way to reduce energy costs is by releasing additional crude oil from the U.S. Strategic Petroleum Reserve.

In a note, analysts at ANZ Bank wrote that “The U.S. also put pressure on the oil markets and President Biden requested his economic advisers to look into ways to lower prices.”

There is increasing speculation that the U.S. may coordinate inventory releases with other countries, like Japan.

Stocks rose in last week’s SPR injection, while gasoline inventories and distillates such as diesel decreased further, according to the Energy Information Administration on Wednesday.

In the week ending Nov. 5, crude inventories increased by 1,000,000 barrels, compared to analysts’ predictions of an increase in oil stocks of 2.1 Million barrels.

SPR released 3.1 Million barrels. This was the biggest release since July 2017.