Biden announces release of strategic petroleum reserve

White House says this will make available up to 50 million barrels of oil from the US strategic petroleum reserve

• This is to lower prices for Americans and address supply-demand mismatch
• This release will be taken in parallel with other nations
• Namely China, India, Japan, Korea, UK
• 32 million barrels will be an exchange over the next several months, releasing oil that will eventually return to the SPR in the years ahead
• 18 million barrels will be an acceleration into the next several months of a sale of oil that Congress had previously authorised

The full statement by the White House can be found here. Adding that the US is ready to take additional action if needed to address the oil market situation.

Oil is a little lower on the news but not by much. WTI crude is at the lows for the day, down to $75.40 but is still keeping above the $75.00 mark for now as that has been a notable support level over the past few sessions.

As mentioned earlier, there might be scope for a slight drop in oil but I'd expect any nearby dips to be bought up now that headline risks are out of the way and as we approach key technical support from the 100-day moving average near $74.22.

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November 24, 2021 at 12:04AM
Justin Low
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