• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 17 hours End of EV Subsidies?
  • 1 min Could Tesla Buy GM?
  • 12 mins Global Economy-Bad Days Are coming
  • 7 hours Permian Suicide
  • 3 hours Price Decline in Chinese Solar Panels
  • 13 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 17 hours Maersk's COO statment.
  • 13 hours Asian stocks down
  • 2 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 20 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 19 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 11 hours IT IS FINISHED. OPEC Victorious

Breaking News:

Tesla Opens 11 New Stores In U.S.

Joint OPEC+ Committee Recommends Cuts

Joint OPEC+ Committee Recommends Cuts

According to Russian press agency…

Oil Drops on Test Sales from U.S. Strategic Petroleum Reserve

After surging over geopolitical tension between Ukraine and Russia, global oil prices fell back on March 12. Improving weather in the United States suggests that fuel demand could decline over the next few weeks as the need for heating dissipates. Inventories rose by 6.2 million barrels in the first week of March, beating the 2.2 million barrel increase projected by market analysts – indicating there is more supply on hand than expected.

Perhaps more importantly was news that the U.S. planned a “test” sale from its Strategic Petroleum Reserve. The Department of Energy plans on selling 5 million barrels of oil in order to test the capabilities of its emergency stockpile. DOE will sell sour crude from its West Hackberry and Big Hill sites in the first test sale since 1990. DOE says that the surge in oil drilling from shale over the last few years has resulted in significant changes for the reserve system, requiring a test to make sure all its capabilities function appropriately.

Related Article: Gas Wars: Will US Export LNG to Europe?

The timing is suspicious considering the standoff with Russia, which has sparked calls for the U.S. to use its SPR as a weapon to undermine Russia. However, DOE went to lengths to say that the test sale has been the topic of discussion for months, and is happening now because annual maintenance cycles at many of the nation’s refineries.

The sale of 5 million barrels is the equivalent of a little more than a quarter of U.S. consumption for one day. Brent prices dropped to $108 on March 12 on news of the announcement. The WTI benchmark dropped by $1.57 in midday trading to $98.46. Troubling economic indicators emerging from China are also raising worries about a slowdown, pushing down oil prices. Fresh data from China will be released on March 13.

By Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
-->