By Gina Lee

Investing.com – Oil was down Friday morning in Asia, sliding more than 1% over concerns that a U.S.-led coordinated release of crude reserves among major consumers could lead to a global supply surplus in the first quarter of 2022.

WTI futures fell 2.56% to $76.35, and the price of WTI was down 2.02% at $80.56 by 10 57 ET (3:30 AM GMT). WTI futures were not settled Thursday because of a U.S. holiday.

U.S. President Joe Biden announced earlier this week that the Strategic Petroleum Reserve will be released. This release will result in millions of barrels being released along with key consuming countries like China, India, and Japan.

According to the Economic Commission Board’s (ECB), which advises the Organization of the Petroleum Exporting Countries, the release is likely to cause an increase in supply over the next months. This was confirmed by an OPEC source who spoke to Reuters.

Sources say the board anticipates an additional 400,000 barrels-per day surplus (bpd), in December 2021. This will increase to 2.3 Million bpd January 2022 and 3.7 Million bpd February, depending on whether consumer nations approve of the release.

The outlook for the next OPEC+ meeting (OPEC+), Dec. 2 is clouded by rising oil prices and forecasts. In January, the cartel will determine whether to continue increasing output by 400,000 barrels per day.

Brent and WTI contract are on track for their first weekly gains in over a month. It was less than anticipated that the total volume of crude reserve releases, which ranged from 70 to 80 millions barrels, was.

Tsutomu, the president of Petroleum Association of Japan said that because the volume of oil is so small it’s not likely to have an impact on oil prices.