By Barani Krishnan

Investing.com: Crude oil prices recovered from their six-week lows Thursday, as traders bought back the contracts they had sold in the prior session. 

However, the idea that China might be releasing some of its oil resources in an apparent partnership with the United States to combat OPEC output cuts slowed the market from regaining its previous highs.

The U.S. crude oil benchmark was at $78.77/barrel by 1:30PM ET (23:30 GMT). 

Oil benchmark London-traded Crude rose by $1.03 or 1.3% to $81.31. 

WTI and Brent both fell by around 3% after reports claimed that the Biden Administration had attempted to lobby China and other oil-consuming nations for Washington’s support in the coordination of crude sales from their reserve. After repeated rejections from the Organization of the Petroleum Exporting Countries, their appeals for more supply were repeatedly denied.

Crude prices rose as much as 60% last year because the Saudi-led 13 members of OPEC, along with 10 oil-producing countries steered primarily by Russia, have about 5.0million barrels of steady supply. This is part of an output cut that was made since the height of Covid-19.

Reports about the Biden administration’s lobby for a coordinated global action on oil reserve sales coincided on Wednesday with data from the Energy Information Administration showing a release of 3.2 million barrels from the U.S. Strategic Petroleum Reserve. 

While the two weren’t connected, oil markets came under undue pressure from the implication that consuming nations weren’t about to continue taking crude from OPEC at current prices without a fightback.

China’s National Food and Strategic Reserves Administration confirmed on Wednesday that it was working on a release of crude from its reserves, though it did not comment on the U.S. initiative. Separately, President Joe Biden renewed his call on regulators to crack down against the “illegal” collusion behind U.S. pump prices, also retailing at seven-year highs.

With no follow-up from China on Thursday over its reserves sale, crude prices climbed back from the previous day’s lows.

“People figured that things got a little oversold and it was time for a correction higher,” said John Kilduff, founding partner at New York energy hedge Again Capital. “But to be sure, there’s fear now that the consumers might band together to fight back against OPEC, and that could keep the market from reprising the year’s highs.”

WTI is now down 2.6% for the week, following a drop of 4% over three weeks. The U.S. crude oil benchmark has risen 62% year-to-date, after reaching seven-year-highs over $85 mid-October.

Brent has fallen 1% in the week to date, also following a loss of 4% over three weeks. After reaching a record $86 for the third consecutive month, global crude oil benchmark is still up 56%.