(Bloomberg). Oil fell ahead of the expected U.S. announcement on a coordinated release reserve. OPEC+ warned that the U.S. may not be able to restore the same amount of crude oil as it did before the decision was made by consumers.

After rising 0.9% Monday, futures in New York fell to $76 per barrel. People familiar with the matter said that the U.S. will announce its release along with other countries as soon as Tuesday. It would likely be done in coordination with India and South Korea. This move is a major effort to reduce prices. China said it’s also working to release reserves.

OPEC+ delegates stated that the release of millions upon millions of barrels of oil is not justified under current market conditions. The group might have to reconsider their plans for adding more oil next week. The U.S. Covid-19 rebound is raising questions about future energy demand.

This rift between the producers and consumers could lead to a struggle for control over the global oil market. Oil’s rally has faltered over the past few weeks, in part due to speculation that consumers will release supplies from strategic reserves. The U.S. is considering a release of more than 35 million barrels over time, although the situation remains in flux and plans could change, according to a person familiar with the White House’s plans. 

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According to officials familiar with the situation, India is yet to make a decision on when and how much to release reserves. However, it will coordinate with major consumers to do so. Japan has stated that it is legally allowed to use its oil stockpiles as long it does not tap into excess supply. TV Asahi reported this, citing an unidentified official. It didn’t provide further details on how much oil would be released.

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