Oil closes near 1-week high as U.S. eyes refill of strategic stock
BNN Bloomberg
Oil settled close to a one-week high as news of a U.S. plan to refill emergency crude reserves largely offset broader inflation concerns.
President Joe Biden’s administration is considering restocking the Strategic Petroleum Reserve when crude falls below US$80 a barrel, Bloomberg News reported on Tuesday. The news revived West Texas Intermediate futures that had earlier dipped as low as US$85 on bearish inflation data.
The White House has been releasing emergency reserves in recent months to plug supply gaps as war and geopolitical turmoil around the world disrupted traditional sources of crude.
“It may not be a catalyst for US$100 crude but does offer a buffer to the downside risk that the market is worrying about,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.
