Oil prices fall on US crude reserve release
Brent crude futures fell by 43 cents, or 0.5%, to US$86.18 per barrel by 0730 GMT, while U.S. crude futures fell by 71 cents, or 0.89%, to US$79.43 per barrel
Oil prices fell on Tuesday after the US government said it would release more crude from its Strategic Petroleum Reserve (SPR) as mandated by lawmakers, counter to expectations from some traders that the release could be cancelled or delayed.
Brent crude futures fell by 43 cents, or 0.5%, to US$86.18 per barrel by 0730 GMT, while US crude futures fell by 71 cents, or 0.89%, to US$79.43 per barrel.
The US Department of Energy (DOE) said after the previous session ended it would sell 26 million barrels of oil from the SPR, a release that would likely push the reserve to its lowest level since 1983.
“Energy traders were expecting to hear news about refilling the SPR and not tapping them for more supplies,” Edward Moya, an analyst at OANDA said.
The DOE had considered cancelling the fiscal year 2023 sale after US President Joe Biden’s administration last year sold a record 180 million barrels from the reserve. But that would have required Congress to act to change the mandate.
Traders will be looking for clues from Tuesday’s crucial US consumer price index (CPI) data for January. U.S. monthly consumer prices rose in the previous two months instead of falling as previously estimated, raising the risk of higher inflation readings in the months ahead.
“Any higher-than-expected data may cause a renewed sell-off in risk assets, including oil,” Tina Teng, an analyst at CMC Markets said.
Supply concerns also eased after the Energy Information Administration said it expected record March production from the seven biggest US shale basins. Elsewhere, crude exports resumed at a key Turkish port after a devastating earthquake rocked the region.
“Oil is on the defensive and it could get uglier if inflation proves to be harder to tame,” OANDA’s Moya said.
Asaase Radio 99.5 broadcasts on radio via 99.5 in Accra, 98.5 in Kumasi, 99.7 in Tamale, 100.3 in Cape Coast and on our affiliates Bawku FM 101.5 in Bawku, Beats FM 99.9 in Bimbilla, Somua FM 89.9 in Gushegu, Stone City 90.7 in Ho, Mining City 89.5 in Tarkwa and Wale FM 106.9 in Walewale
Tune in or log on to broadcasts online: www.asaaseradio.com, Sound Garden and TuneIn
Follow us on Twitter: @asaaseradio995
Live streaming: facebook.com/asaaseradio99.5. Also on YouTube: Asaase Radio Official.
Join the conversation. Call: 020 000 9951 or 059 415 7777. Or WhatsApp: 020 000 0995.
#AsaaseRadio
#TheVoiceofOurLand
