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The US is resorting to strategic oil reserves to calm prices. The largest amount could be released since the reserves were set up

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According to the quoted source, the member states of the International Energy Agency (IEA) will meet on Friday to decide on the coordinated release of oil, a spokesman for the New Zealand Ministry of Energy announced on Thursday.

“The amount of oil that would be released in a coordinated manner has not yet been decided. The total volume will be determined at the meeting and then the allocation by country will follow “, added the spokesperson, informs Agerpres.

It would be the third time in the last six months that the United States has released oil from its strategic reserves and it would be the largest amount since the reserves were built up.

According to reports, the price of a barrel of oil fell by more than five dollars.

This month, following the conflict between Russia and Ukraine, the price of a barrel of Brent oil in the North Sea rose to about $ 139, the highest level since 2008, but on Thursday in Asian transactions fell below $ 108.

Russia is a major oil producer, contributing about 10% to the global market. But buyers’ sanctions and reluctance to buy Russian oil could remove about three million barrels a day (bpd) of Russian oil from the market as early as April, the IEA estimates.

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Russia exports 4-5 million barrels a day.

US Secretary of Energy Jennifer Granholm said last week that the US and IEA allies were again discussing the coordinated release of oil from strategic reserves.

Earlier this month, member states of the International Energy Agency decided to release 60 million barrels of oil from their strategic reserves to ease prices. Half of the total came from the US strategic reserve and the rest from other major industrialized powers, such as Japan and Germany.

The International Energy Agency is the leading energy advisory body in the 29 most developed countries. The agency was set up in response to the first oil shock from 1973 to 1974 to coordinate the release of oil from reserve stocks.

So far, the IEA has coordinated only three oil reserves from strategic reserves: in 1991 during the Gulf War, in 2005 after Hurricanes Rita and Katrina, and in 2011 during the Libyan civil war.

Oil prices rose about 3 percent on Wednesday as a further drop in U.S. oil stocks indicated that supplies were low and investors were worried about the impact of possible new Western sanctions against Russia, Reuters reported.

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Brent futures closed up $ 3.22, or 2.9%, at $ 113.45 a barrel.

West Texas Intermediate (WTI) crude oil prices rose $ 3.58, or 3.4 percent, to $ 107.82 a barrel.

US crude oil stocks fell 3.4 million barrels last week more than expected, reducing the world’s largest consumer stocks to 410 million barrels, the lowest level since September 2018, according to government data.

“Crude oil stocks in the US have shown a further decline, despite rising production and a new release of oil from strategic stocks to commercial stocks,” said Matt Smith, chief oil analyst at Kpler. was determined by the increase in refining activity.

After seven weeks of steady growth, U.S. crude oil production rose 100,000 barrels a day (bpd) last week to 11.7 million bpd, while crude oil stocks fell to its lowest level. since May 2002, and the use of the Gulf Coast refinery has risen to its highest level since January 2020.

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