The hottest IEA released oil reserves, crude oil f

2022-08-19
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Crude oil futures fell sharply on Thursday as the International Energy Agency (IEA) previously announced that its member countries would release 60million barrels of strategic oil reserves to ease the pressure of rising oil prices

crude oil prices fell as low as $89.69 a barrel, the lowest level since February 22. The settlement price of August light sweet crude oil futures contract on the New York Mercantile Exchange fell $4.39, or 4.6%, to $91.02 a barrel

the August Brent crude oil futures contract on the London Intercontinental Exchange (ice) rebuilt BYD's supply chain fell even more, with the settlement price falling $6.95 to $107.26 a barrel, down 6.1%

iea unexpectedly announced that its member countries would release 2million barrels of strategic oil reserves per day in the next 30 days to alleviate the pressure caused by the interruption of Libyan crude oil exports caused by the civil war. The United States said it would provide half the quantity

The IEA issued a statement saying that the impact of the interruption of Libyan oil exports has become increasingly obvious, as it has begun to endanger the fragile process of global economic recovery

the drastic changes in Libya that began in February have made the country's oil exports of about 1.3 million barrels a day disappear from the market, which has been the main factor in the rise in oil prices this year. EIA said that as of May, about 132million barrels of Libyan light and low sulfur crude oil had disappeared from the market

however, the above decision of the IEA surprised oil market participants, because oil prices have been falling since June, and earlier this year, when crude oil futures on the New York Mercantile Exchange soared to around $115 a barrel and gasoline prices approached $4 a gallon, the Obama administration did not agree to use strategic oil reserves

in addition, Saudi Arabia has promised to increase crude oil production this year after the organization of the Petroleum Exporting Countries (OPEC) failed to increase its production quota (the panel control system and electrical control system of the experimental machine are on the top left of the simple frame)

the last time IEA agreed to release strategic oil reserves was in September 2005, when Hurricane Katrina interrupted oil production in the Gulf of Mexico. At that time, the IEA also said it would put 60million barrels of oil on the market, although the United States provided less than half of the amount to the market

it is still unclear how the 60million barrels of strategic oil reserves to be invested in the market will affect oil prices. The current commercial crude oil inventory in the United States has been much higher than the usual level in the same period of previous years; Many analysts said that oil prices have been falling due to the slowdown in the US economy

however, the impact of the Libyan oil supply disruption on European crude oil supply is greater than that of the United States. The IEA's decision on Thursday led to a sharp fall in the price of Brent crude oil, the European benchmark. GoldmanSachs said that the oil reserves that will be released soon will cause the price of Brent crude oil to fall by $10 to $12 a barrel in the short term

in addition, the loss of Libyan exports has led to a global shortage of light and low sulfur crude oil, which is of high quality and regarded by refiners as the most valuable crude oil. Although Saudi Arabia has promised to increase production, it produces mainly heavy crude oil

michaelwittner, an oil analyst at Industrial Bank of New York, said: "Saudi Arabia and other member states can make up for quantity, but they can't make up for quality."

according to senior government officials and the mobile workers of the grating, the United States plans to release mainly the light and low sulfur crude oil in its strategic reserve to make up for the shortage

the settlement price of July rbob gasoline futures fell 13.57 cents to $2.8376 per gallon, down 4.6%. The settlement price of heating oil futures in July fell 17.32 cents, or 5.9%, to $2.7817 per gallon

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