© Richard Carson
FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson – S1AETIZMOIAB/File Photo
The prices of Petroleum They suffer a powerful fall, they are located at two-week lows and are very close to the support of US $ 100 following the US plans to release your reserves to reduce the value of the barrel.
London-traded Brent crude is trading at $106.79 right now, down 5.87% from yesterday’s close. The reference WTI for the US registered a drop of 6.08% to US$ 101.26.
It must be remembered that Russia’s invasion of Ukraine altered the market for raw materials and the price of energy, particularly gas and oil, which skyrocketed highs since 2008.
The Economic sanctions applied by the West to Moscow for military action on its neighbor further pushed up prices, tightening supplies.
In this context, the White House is weighing a plan to release approximately one million barrels of oil per day from US reserves, for several months, to combat the increase in gasoline prices and the shortage of supply following the invasion of Russia to Ukraine, according to people familiar with the matter.
The total release might reach 180 million barrels, the people said.
The plans are accompanied by a diplomatic push for the International Energy Agency to coordinate a collective release of other countries.
“Desperate times call for desperate measures and clearly the Biden administration believes the rebound in oil prices justifies this move to access the country’s emergency supplies,” Susannah Streeter, an analyst at Hargreaves Lansdown, quoted Archyde.com as saying.
The analysts of Goldman Sachs They stated that the move would help rebalance the oil market in 2022, but it is not a permanent solution.
“This would still be a release of oil inventories, however, not a persistent source of supply for years to come. Therefore, this release would not resolve the structural supply deficit, which has been taking place for years,” they pointed out.
