17 Nov 2021
Oil Dips Further with Smaller-Than-Expected U.S Crude Oil Supplies Report
The Index Today
The latest U.S Crude oil supply data revealed a small increase in build, pushing oil down on Wednesday morning in Asia. Additional pressures including Biden’s release of oil from emergency reserves to manage rising prices were prevalent.
Brent oil futures were down 0.80% to $81.77 by 10:56 PM ET whereas WTI futures declined 0.76% to $79.13. President Joe Biden has not yet confirmed the release of oil supplies from the emergency reserve as energy prices soar in California.
U.S House Majority Leader Steny Hoyer stated his disagreement with Senate Majority Leader Chuck Schumer for considering the Strategic Petroleum Reserve SPR for lowering fuel prices, saying that the SPR should only be used for maintaining supplies in an emergency. On the other hand, many investors have stated that the emergency fuel release could prove beneficial and will be temporary. Edward Moya OANDA analyst said in a note, “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.”