(Bloomberg). Oil prices rose after traders weighed whether crude oil would be released from the U.S. Strategic Petroleum Reserve. This was after OPEC+ resisted President Joe Biden’s plea to increase supplies faster.
After gaining 3.1% Friday, West Texas Intermediate saw 0.5% gain in Asian trading. This was to make up for a weekly loss. As it evaluates ways to lower gasoline prices, the administration will be considering data from Tuesday’s release, Energy Secretary Jennifer Granholm stated on Sunday. Bloomberg was told Sunday by Vitol Group that OPEC+’s largest independent oil trader said it is unlikely they will change their stance.
Oil’s rally to a seven-year high has alarmed Biden, who led calls from consumers last week for the Organization of Petroleum Exporting Countries and its allies to step up the pace they are reactivating the supply shuttered at the start of the pandemic. The alliance decided to continue with the planned modest increase of 400,000 barrels per day despite Biden’s plea. That’s raised the possibility of an SPR release, which could be made in coordination with other states.
As the U.S. government weighs its options, Granholm highlighted the monthly survey by the Energy Information Administration that’s due to be released this week. The short-term outlook on energy provides information about oil, energy markets, and forecasts of demand and supply.
A day after OPEC+ ignored Biden’s call to speed up the pace of output increases after last year’s Covid-related cuts, Saudi Arabia raised its official crude prices for all buyers. This is an indication that Saudi Arabia will resist U.S. demands to increase output faster, according to Mike Muller (head of Asia for Vitol).
This year, crude oil prices have soared — causing inflation to rise and product prices to go up — because vaccines were introduced and increased mobility. An increase in gasoline supplies has driven additional consumption. Goldman Sachs Group Inc (NYSE:). The global benchmark is expected to reach $90 per barrel, according to the forecasts of Inc.
A bullish pattern of near-term price movements above that further out indicates that the oil market continues to be backwardated. Brent’s prompt spread was $1.05 a barrel on Monday compared with 70 cents a month ago.
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