Oil falls as the US stops replenishing the strategic reserve – #Oil #falls #stops #replenishing #strategic #reserve
March 24 (Reuters) – USAAfter Energy Minister Jennifer Granholm said it could take several years to replenish the country’s Strategic Petroleum Reserve (SPR), oil prices extended its losses on Friday on concerns about potential supply.
Brent oil fell by 24 cents or 0.32% to $75.67 a barrel. USAWest Texas oil futures fell by 24 cents or 0.34% to $69.72 per barrel.
Both indicators, which fell about 1% on Thursday, bank It was on track for a weekly gain of around 3%-4% last week, recovering from its biggest weekly decline in months due to the sector crisis and concerns about a possible recession.
Hiroyuki Kikukawa, senior manager of research at Nissan Securities, said, “WTI prices 67-72 per barrel dollars even so, there is a sell-off that the United States will not replenish its oil reserves,” he said.
The White House in October, prices are about 67-72 per barrel dollars or said it would buy oil back for the SPR when it was below that.
Granholm told MPs that this year, using lower prices than last year the president After the Joe Biden-led selloff, it will be difficult to add to stocks, which are at their lowest level since 1983.
Nissan Securities’ Kikukawa said continued crude oil supplies from Russia to the global market are also affecting oil, which bank coupled with continued concern about the sector could push the benchmarks to test their lows earlier this week.
Russia Deputy Prime Minister Alexander Novak announced that Russia’s oil production will be reduced by 500,000 barrels per day in February. 10said that it will be at the level of 2 million barrels.
That means Russia plans to produce 9.7 million barrels a day between March and June, when output cuts take effect, according to Novak — a smaller drop than Moscow previously indicated.
However, the drop in oil prices was flattened by expectations of strong demand from China, with Goldman Sachs saying demand for commodities in China, the world’s biggest oil importer, was rising and oil demand exceeded 16 million barrels per day.
Bank It predicts that Brent oil will reach $97 per barrel in the second quarter of 2024.
Last week’s drop of more than 1% in the dollar exchange rate limited downward price pressures, making dollar-denominated commodities cheaper for other currency holders.
Yuka Obayashi in Tokyo and Trixie in Singapore Do Report by; Edited by Sonali Paul and Himani Sarkar
Our standards: Thomson Reuters Trust Principles.
2023-03-24 11:02:26
Source – reuters
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