• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 days Does Toyota Know Something That We Don’t?
  • 5 days America should go after China but it should be done in a wise way.
  • 16 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 10 days World could get rid of Putin and Russia but nobody is bold enough
  • 12 days China is using Chinese Names of Cities on their Border with Russia.
  • 5 hours How Far Have We Really Gotten With Alternative Energy
  • 17 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 13 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
Microwave Energy Could Fix The Biggest Problem Facing EVs

Microwave Energy Could Fix The Biggest Problem Facing EVs

Researchers from the University of…

How To Play The Nuclear Power Renaissance

How To Play The Nuclear Power Renaissance

A nuclear renaissance seems likely,…

Oil Prices Continue to Climb on SPR Refill News

Crude oil prices began trading this week with a gain, extending Friday’s rally as news emerged that the U.S. federal government is buying up to 3 million barrels for the strategic petroleum reserve.

So far, the government has bought 9 million barrels of crude in batches of three, the first steps in the refilling of the SPR after drawing over 180 million barrels last year to stabilize fuel prices.

Prices are right now in the sweet spot of the Department of Energy but it has been a given that prices will jump as soon as the DoE says it’s buying, which is just what happened. Still, WTI remains well below the upper end of the price range that the DoE set itself, which was $79 per barrel.

"We know the Biden Administration is in the market looking to refill the SPR, which will provide support," IG analyst Tony Sycamore said in a note quoted by Reuters.

Another IG analyst told Bloomberg that “Gains are still somewhat capped into the new week on China demand concerns.” Yeap Jun Rong added that the SPR refill news would naturally push prices higher “but whether this marks the ‘true’ floor for oil prices remains to be seen.”

Crude oil prices have been falling for seven weeks in a row, even as OPEC+ announced additional, deeper production cuts to the total tune of 2.2 million bpd, beginning from January, set to last to at least the end of March.

The failure of this move to prop prices up came from a perception of oversupply from traders and expectations that oil demand growth in China is going to slow down next year.

At the same time, reports of record-breaking U.S. production served to reinforce the oversupply concern, especially with demand projections for next year, at least per the IEA, rather pessimistic.

ADVERTISEMENT

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News