23.11.202119:15:00UTC+00Oil Futures Settle Sharply Higher

Crude oil futures settled sharply higher on Tuesday, rebounding strongly from earlier losses.

Worries about the outlook for energy demand due to rising coronavirus cases in Europe, and concerns about excess supply in the market amid plans by the U.S. to release oil from the Strategic Petroleum Reserve in coordination with China, India, Japan, South Korea and the U.K., weighed on crude oil prices earlier in the day.

The U.S. said today that it would release millions of barrels of oil from strategic reserves to cool prices after OPEC+ producers repeatedly ignored calls for more crude.

The Biden administration said it would release 50 million barrels from the U.S. Strategic Petroleum Reserve, which will start hitting the market in mid to late December.

West Texas Intermediate Crude oil futures for January ended higher by $1.75 or about 2.3% at $78.50 a barrel, well off the day's low of $75.30 a barrel.

Brent crude futures were up $2.65 or 3.3% at $82.37 a barrel a little while ago.

Traders now look ahead to the weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). While the API's report is due later today, the EIA will released its inventory data Wednesday morning.