U.S. to release 15M barrels from Strategic Petroleum Reserve – reports (NYSEARCA:USO)
The Biden administration will release 15M barrels from U.S. emergency reserves Wednesday, and may consider significantly more releases this winter, according to multiple reports Tuesday, citing unnamed senior administration officials.
The release would be the final tranche of oil from the program started in the spring to release a total of 180M barrels of crude from the SPR to address high gasoline prices; so far, 165M barrels have been released.
The White House also unveiled details on replenishing the emergency stockpile, planning to initiate purchases when WTI crude prices are at or below $67-$72/bbl, according to a senior administration official.
The 15M barrels from the original tranche will hit the market in December; a decision reportedly will be made next month whether additional releases are needed in January.
With traders worried about another release of crude from the SPR as well as ongoing recession fears, front-month Nymex crude oil (CL1:COM) closed -3.1% to $82.82/bbl, while Brent crude (CO1:COM) settled -1.7% to $90.03/bbl.