© Reuters
by Gina Lee
Investing.com – Oil prices fell Thursday morning in Asian markets. It dropped more than $5 a barrel as the United States considers releasing up to 180 million barrels from Strategic Petroleum Reserves (SPR) in the coming months.
It was down 4.85% to 106.04 by 12:56 AM ET (4:56 AM GMT), down 5.86% to $101.5 after a previous low of $100.85.
Biden US President SPR release plans are expected to be announced today, citing three sources, Warren Patterson, ING’s head of commodity strategy, told Reuters, citing 180 million barrels. “If it turns out to be able to release that much It will be important and will help fill in the missing to some extent. But not all.”
“Another important question is whether this number will be part of broader coalition cooperation.”
The last time the US It announced its SPR release plan, saying it would sell 30 million barrels of strategic reserves. This is part of a plan to release 60 million barrels worldwide. It also announced in November 2021 plans to release 50 million barrels.
“I guess we also need to look at whether this is a direct stock release or an exchange,” Patterson said.
However, other investors remain skeptical about the impact of the launch.
“It was a very shocking feeling. But if history teaches us how, releasing oil reserves is only a temporary fix. And it’s similar to putting plaster on a broken leg,” Stephen Innes, managing partner at SPI, told Reuters.
The International Energy Agency called an emergency meeting of ministers on Friday to discuss oil supplies. A spokesman for Australian Energy Minister Angus Taylor said on Thursday. The Organization of the Petroleum Exporting Countries and Allies (OPEC+) will also meet on Thursday. It is widely expected to stick to existing agreements to gradually increase production.
Crude oil fell about 3 percent on Wednesday after peace talks between Russia and Ukraine to end a war fueled by Russian aggression on Feb. 24 had made little progress. and supply concerns have increased.
Meanwhile, Wednesday showed 3.449 million barrels of oil were extracted in the week to March 25. Investing.com 1.022 million barrels were projected to be drawn, while the actual figure, 2.508 million barrels, was recorded last week.
published the day before Shows the fall of 3 million barrels of oil inventories.
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