TOKYO: Dubai crude oil futures hit a seven-week low on the Tokyo Commodity Exchange on Monday.

The plunge chiefly reflected envisaged coordinated action by Japan, the United States, China and other major oil-consuming countries to release part of their oil reserves in response to surging crude oil prices, market sources said.

The benchmark April 2022 contract fell as low as 51,850 yen per kilo-liter, lowest since Oct. 4. The contract finished the day at 51,960 yen, down 2,410 yen from Friday.

Dubai crude oil futures hit a three-year high of 57,240 yen in mid-October on the back of growing energy demand amid the recovery of the global economy from the fallout of the novel coronavirus pandemic.

As closely watched US West Texas Intermediate crude oil futures stayed high, the United States asked Japan and China to release part of their oil reserves to prevent crude oil prices from rising further.

Prime Minister KISHIDA Fumio said Saturday that his administration is considering releasing part of Japan’s oil reserves in the coordinated action.

“Crude oil prices are unlikely to drop sharply. They may even turn higher as we have entered winter, when heating demand increases,” said Hiroyuki Kikukawa, chief analyst at Nissan Securities Co.

JIJI Press