Posted on 03/01/2022 1:48:44 PM PST by nickcarraway
The IEA Ministerial Meeting being held on Tuesday has resulted in an agreement of some of its members to release 60 million barrels of crude oil from various countries’ strategic petroleum reserves.
The United States has agreed to release 30 million barrels of crude oil from its SPR. The rest of the IEA members in Europe and Asia will release the remaining 30 million barrels.
The concerted release is said to have a greater impact on the global oil markets than just a single country’s release—but analysts have questioned how much of an impact it would really have on the global markets, considering that 60 million barrels is less than a day of global oil demand.
But what the market is fearing here is lost Russian barrels. Lost to the market, that is. And for this, we’re talking about less than 7 million barrels a day that are exported.
To offset that with 60 million barrels for a short while is certainly achievable. What’s more, it’s very unlikely that all Russian crude oil exports would be stopped, even if they are sanctioned. It is far more likely that China would continue to purchase crude oil from Russia even if there are sanctions, leaving an even smaller share for the SPR releases to cover.
But the market is interpreting the 60 million barrels as a mere drop in the big oil bucket, as evidenced by the rise in prices. Shortly after the announcement, WTI shot up $8.54 (+8.92%) on the day to $104.26. Brent, meanwhile, jumped up $7.85 (+8.01%) to $105.82 per barrel on the day.
(Excerpt) Read more at oilprice.com ...
Gas price watchers are saying expect a big jump in price in the next few days.
$3.59 this AM
A drop in the bucket to anyone who knows basic math.
Big guy getting his 10%
Chevron has done nicely since the lows two years ago.
United States Oil consumption is ~21 million barrels per day..
HUH? That didnt fix it? WTH?!
Yep, the SPR is a spit in the ocean and a meaningless gesture. For perspective, didn’t Brandon cut production 3 million per day?
No, you government dummies, the price went up BECAUSE of the releases. These releases seem to consistently spook the markets and cause an increase in price. Unless we’re genuinely short, just stop it!
biden, democrats, rinos and the environmentally-ills are enjoying your pain
around $3.60 in Escambia County and $3.65 in Pensacola.
This is classic Democratic economic policy.
Attack the symptoms, not the disease.
Then as the patient gets sicker and sicker, pull out the band-aids—and don’t forget the vaccines.
And remember, most of all—lots of press releases on what geniuses you are!
Biden better wake the hell up and release drilling on public land and restart the Keystone pipeline and release his other restrictions on oil production or kiss his ass goodby as president!
They are not paying for what they're pumping into their car from the end of the pipeline, they are paying to replace the crude at the beginning of the pipeline.
-PJ
Gee, Biden releases oil from the reserves just before his state of the union. Price of gas crashed ... Bwhahahahahaha
Oil and gas companies have been warned by President Turnip. Stop gouging.
Biden is making sure that when everything really goes to hell, we are well and truly screwed.
The more they release the higher the price of gas goes.
Have you looked at the soaring price of coal lately?
A drop in the bucket to anyone who knows basic math.
*************
That knowledge requirement would rule out a good portion of the population.
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