By Gina Lee
Investing.com – Oil was down Wednesday morning in Asia, with the latest U.S. crude oil supply data showing a smaller-than-expected build. There is also pressure on U.S. President Joe Biden to release oil from emergency reserves to curb rising gasoline prices.
Brent oil futures fell 0.80% to $81.77 by 10:56 PM ET (3:56 AM GMT) and WTI futures fell 0.76% to $79.13.
Biden has been debating whether to release supplies from the Strategic Petroleum Reserve (SPR), especially as gasoline prices hit a record high at California pumps during the week.
However, opinion remains divided as to the necessity of the move.
U.S. House Majority Leader Steny Hoyer said on Tuesday that he disagreed with Senate Majority Leader Chuck Schumer's call on Sunday for tapping the SPR to lower gas prices, arguing that the SPR’s purpose is to fill a supply gap in an emergency.
Some investors also argued that the impact of an SPR release would be temporary and increased supply from U.S. shale producers or the Organization of the Petroleum Exporting Countries (OPEC) would be more beneficial.
"It seems the energy market is convinced that even if the U.S. resorts to tapping the Strategic Petroleum Reserve, the benefits would be minimal ... to the U.S. consumer," OANDA analyst Edward Moya said in a note.
Meanwhile, Tuesday’s crude oil supply data from the American Petroleum Institute (API) showed a build of 655,000 barrels for the week ended Nov. 9, less than the 1.55-million- barrels build in forecasts prepared by Investing.com and the 2.485-million-barrel draw reported during the previous week.
Investors now await crude oil data from the U.S. Energy Information Administration, due later in the day.