Choose your color scheme:
The Vette Barn  
 
Go Back   The Vette Barn > Off Topic/Babes/Other > Politics & Religion

Politics & Religion Discussion of politics and religion

User Tag List

Reply
 
Share Thread Tools Search this Thread
Old 03-31-2022, 8:05am   #1
69L46
Vette Barn Crew
Points: 2,792, Level: 34
Activity: 17.8%
 
69L46's Avatar
 
Join Date: Jan 2021
Posts: 653
Thanks: 255
Thanked 530 Times in 224 Posts
Gameroom Barn Bucks: $500
Default Biden administration may release a million barrels of oil daily from US reserves

The national average price of gas is about 62 cents higher than a month ago.


Yes, this should 'fix' the problem.




https://www.cnbc.com/2022/03/31/oil-...m-reserve.html
--------------------------------------------------------------
  • Biden is set to give remarks later on Thursday, with multiple outlets reporting that the plan to cool soaring crude prices will involve the release of around 1 million barrels of oil per day for several months.
  • In a research note Thursday, Goldman Sachs commodity analysts said the reported SPR release would help the oil market toward rebalancing in 2022, but would not resolve its structural deficit.

LONDON — Oil prices dropped sharply on Thursday after reports that U.S. President Joe Biden is considering the release of up to 180 million barrels from the country’s strategic petroleum reserve (SPR).

Biden is set to give remarks later on Thursday, with multiple outlets reporting that the plan to cool soaring crude prices will involve the release of around 1 million barrels of oil per day for several months.

International benchmark Brent crude futures for May fell by 5.5% to $107.20 per barrel by 9 a.m. on Wall Street, paring earlier losses. U.S. crude futures for May delivery slid 5.3% to $102.34 per barrel. Earlier in the session the contract traded as low as $100.16.

Gasoline prices have surged to record highs on Russia’s invasion of Ukraine and subsequent supply concerns, driving spikes in inflation across the global economy.

Russia is the world’s second-largest exporter of oil, and unprecedentedly punitive international sanctions following the invasion have disrupted flows out of the country.

In a research note Thursday, Goldman Sachs commodity analysts said the reported release from U.S. reserves would help the oil market toward rebalancing in 2022, but would not resolve its structural deficit.

“This would reduce the amount of necessary price-induced demand destruction, the sole oil rebalancing mechanism currently available in a world devoid of inventory buffers and supply elasticity,” Goldman Sachs said.

“This would remain, however, a release of oil inventories, not a persistent source of supply for coming years. Such a release would therefore not resolve the structural supply deficit, years in the making.”

They added that lower prices in 2022 would support oil demand while slowing the acceleration in U.S. shale production, leaving a deficit in 2023 and a likely need to refill the U.S. reserves.

The International Energy Agency will hold an emergency meeting on Friday to discuss oil supply concerns, Australian Energy Minister Angus Taylor announced on Thursday.

The Organization of Petroleum Exporting Countries and its allies including Russia (known as OPEC+) met on Thursday, deciding to hold production output largely steady. From May 1 the group will increase output by 432,000 barrels per day.

A ‘risky strategy’

Ed Bell, senior director of market economics at Emirates NBD, told CNBC on Thursday that despite the record scale of the expected SPR release, an enormous downswing in its immediate aftermath would be unlikely.

“Markets are still going to be very much squarely focused on supply going forward and the lack of it that we’re going to be seeing from Russia, the incremental additions we’re going to be seeing from OPEC+ and so far the real lack of price response from U.S. producers to high prices,” Bell told CNBC’s “Capital Connection.”

“For the longer term though, I do think this is a bit of a risky strategy for the U.S. to draw down on its SPR so heavily if you think that we’re going to be going into the more heavy use summer months in the United States, we’re going to be drawing down inventories just as we’re going to be needing them in a time of uncertain supply conditions.”

Bell added that if the oil market maintains a structural deficit for a prolonged period, drawing down on U.S. reserves could “help underpin a bullish case for oil prices” over the next 12 to 24 months.
69L46 is offline   Reply With Quote
Old 03-31-2022, 8:38am   #2
DJ_Critterus
Explosive Salami
Stall Owner #1120.2520
 
DJ_Critterus's Avatar
 
Join Date: Feb 2010
Location: Not Ceasing & Desisting on the leeward side of Anger Island
Posts: 51,707
Thanks: 21,480
Thanked 27,653 Times in 11,657 Posts
Gameroom Barn Bucks: $9018209
Default

This wouldn't have been an issue if he hadn't reversed Trump's policies out of spite and ignorance.
DJ_Critterus is offline   Reply With Quote
The Following 2 Users Say Thank You to DJ_Critterus For This Useful Post:
Old 04-23-2022, 6:13am   #3
Allan
Barn Raising II
Points: 15,806, Level: 86
Activity: 1.1%
 
Allan's Avatar
 
Join Date: Jan 2011
Location: Central Ohio
Posts: 3,050
Thanks: 852
Thanked 579 Times in 361 Posts
Gameroom Barn Bucks: $610770
Default

He just did!
https://en-volve.com/2022/04/22/bide...our-gas-pumps/
Allan is offline   Reply With Quote
Reply

The Vette Barn > Off Topic/Babes/Other > Politics & Religion


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 12:44pm.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2024 DragonByte Technologies Ltd.
Copyright © 2009 - 2024 The Vette Barn


Support the Barn:
 
Download the Mobile App;
 
Follow us on Facebook:

Become a Stall Owner

 

Apple iOS App        Google Android App

 

Visit our Facebook page