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The API inventory report on Tuesday showed a crude oil inventory decrease that sent prices upward. But WTI fell on Wednesday after the EIA reported the opposite on Wednesday—a crude oil inventory increase.
The price dip, triggered by data supplied by the government-run Energy Information Administration, a strong dollar that makes U.S. oil costlier for other nations, and inflation fears, will at least partially alleviate some pressure on the Biden Administration, who on Wednesday said that oil prices were a top issue.
Traders ditched the risky oil assets on Wednesday, fearing central bank actions as prices continue to rise.
WTI crude sank $2.90 per barrel (-3.45%) at 4:00 p.m. EDT to $81.25, while Brent crude fell $2.22 (-2.62%) to $82.56.
The Biden Administration has found itself in hot water over the high crude oil and gasoline prices—the latter which have plagued the American consumer, threatening to diminish support for President Biden. President Biden is still considering other avenues to quash prices, including a release of crude oil from the Strategic Petroleum Reserve and repeated calls on OPEC+ to increase production.
The Administration has even decided to spare the controversial Line 5 pipeline that runs from Canada to Michigan, which has found ardent resistance from Democrats, including Michigan’s Governor Gretchen Whitmer who is now largely out on a limb in her resistance as President Biden pulls out all stops to curb high prices.
The U.S. oil industry has claimed that Biden’s anti-U.S. oil industry ways are precisely what is contributing to the high prices. The President has argued that OPEC+ and their refusal to produce more crude oil is what is keeping oil prices high.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.