Biden’s SPR release sends oil prices below $100

Biden’s unprecedented decision to release 180 million barrels of oil from the country’s Strategic Petroleum Reserve over the next six months has sent oil prices below $100. Although many upside risks remain, oil prices are poised for their biggest weekly drop in two years.

Oil price alert. Biden’s decision to release 180 million barrels of oil from the SPR shows just how dire the situation in oil markets has become. make sure subscribe to Global Energy Alert read this week’s analysis of what it all means.

Friday, April 1, 2022

In a week that saw OPEC+ implement its latest production increases and the US announce an unprecedented SPR release, oil prices saw their biggest weekly decline in over 2 years. While the OPEC+ decision was hardly a surprise, the Biden administration’s drive to rein in runaway fuel prices pushed Brent futures closer to the $100 mark on barrel. Despite the scope and ambition of Biden’s latest move, it may not be enough to keep WTI below $100 a barrel, as the sheer size of Russia’s potentially sanctionable 3m bpd maritime flow still hovers. on the stairs.

OPEC+ is sticking to modest increases in oil production. In a meeting that lasted only 12 minutes, the OPEC+ countries Agreed to add 432,000 bpd of production in May 2022 despite the prospect of a slowdown in Russian production, resisting calls from the IEA and the United States to increase production.

USA releases largest SPR release ever. The Biden administration has launched the largest-ever release of SPR crude in a bid to drive down gasoline prices, pledging to release 180 million barrels over the next six months, equivalent to a flow constant of 1 million b/d of crude.

Russia doubles its threat on the rouble. Russian President Vladimir Putin sign a decree on Thursday requiring buyers of Russian gas from “hostile countries” to open ruble accounts in Russian banks and use these accounts to settle payments for gas delivered by Gazprom (MCX:GAZP).

US warns India not to buy too much Russian oil. The US State Department has launched to express his annoyance with India’s buying spree of heavily discounted Russian barrels, saying any tangible increase would put New Delhi at risk as Washington will try to restrict purchases from other countries. Related: Sanctions force Russian companies to consider moving to Kazakhstan

Gazprom’s European offices raided amid new investigation. The German offices of the Russian gas giant Gazprom (MCX:GAZP) were raided by EU antitrust regulators, adding another twist to previous accusations of denial of gas supplies to Europe.

The Chinese CNOOC intends to leave the projects in the North Sea. Chinese state-owned offshore producer CNOOC (HKG:0883) East to prepare to exit one of the largest fields in the North Sea, Buzzard, despite being the operator with a 43.2% stake, seeking to raise $3 billion from the deal.

OPEC removes IEA from list of sources. In another move at the International Energy Agency, OPEC officials voted to remove the IEA from its list of “official” secondary sources used to estimate the production rates of OPEC member countries.

Tesla signs secret nickel deal with Vale. American manufacturer of electric vehicles Tesla (NASDAQ:TSLA) would have signed an undisclosed multi-year supply agreement with the Brazilian mining giant VALE (NYSE: VALE) for the supply of nickel from its mines in Canada.

US authorities want more ethanol in gasoline. The Biden administration is considering temporarily removing restrictions on summer sales of high-ethanol gasoline as a way to lower gasoline costs across the country, reversing an earlier decision to ban E15 because it contributes to smog in hot weather .

ICE wants to move the clearing to Chicago. Intercontinental exchange is ruminant a decision to move credit default swap (CDS) clearing from London to Chicago, as pressure from the European Union means ICE would no longer be able to serve EU customers after June 2025.

US Lithium Miners Up on Biden EV Battery Push. Shares of US lithium producers such as Albemarle (NYSE:ALB) Where Livent (NYSE: LTHM) soared this week after media reports that the Biden administration was seeking to invoke legislation to encourage domestic production of metals for electric vehicle batteries.

Brussels takes the UK to the WTO Court for subsidies. The European Union spear a dispute with the United Kingdom at the World Trade Organization, arguing that London subsidies for low-carbon energy projects violate WTO rules by integrating local content rules into the selection process.

PDVSA is looking to buy tankers. In a move that could herald an easing of US sanctions on Venezuela, the Latin American country’s oil company PDVSA has reportedly sought to buy and lease several tankers to refresh its fleet of 30 ships, reimbursing the seller in Venezuelan barrels.

Bunker contamination is sending shockwaves through Singapore. Singapore is experiencing a series of complaints from shipowners who have found chlorinated contaminants in their bunker fuel, leading to loss of power and engine failures.

By Josh Owens for Oilprice.com

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Felix J. Dixon