Oil falls in US SPR draw, Biden’s new oath of repression against high prices by Investing.com

(Updates prices)

Author: Barani Krishnan

Investing.com – Oil prices fall again on Wednesday after data show 3.2 million barrels fell from the nation’s Strategic Oil Reserve last week, following a new call from regulator Joe Biden to regulators for “illegal” cooperation behind high energy prices to fight against.

Earlier this week the Paris International Energy Agency added warnings about a higher global supply of crude oil in the fourth quarter and another rise in COVID-19 cases in Europe in a bad oil mood.

The Energy Supply Demand Weekly report from the Energy Information Administration released on Wednesday showed that the SPR’s inventory level fell to 606.1 million barrels at the end of November 12 from 609.4 million in the week of November 5th.

The White House has been talking for weeks about the use of SPR to cool U.S. pumping pump prices, selling at least $ 60 percent to $ 3.40 to $ 4.05 a year ago.

It is not known whether the sharp drop in the SPR warehouse that the EIA mentioned last week was a direct consequence of the policy being pursued by the White House.

SPR releases are sometimes made to alleviate short supplies from hurricane-like events, and the U.S. has had some real weakening storms this year, especially Hurricane Ida in August, which closed large parts of oil production and refining on a weekly basis.

But the oil market did not disappoint between the release of SPR and the fight against Biden’s oil and gas companies. who accused him of rising prices.

, The gross US benchmark, fell $ 1.68 or 2.1% to $ 78.96 per barrel at 12:30 PM ET (17:30 GMT). Tuesday’s WTI fell 3.4% after losing 4% in the previous three weeks. Prior to that, the gross U.S. benchmark hit a seven-year high above $ 85 in mid-October.

Crude oil traded in London, the global benchmark for oil, fell $ 1.47 or 1.8% to $ 80.96. Throughout the week, Brent was down 1.5% on the week, after losing 4% in the previous three weeks as well. Previously, the global benchmark rose to a three-year high of more than $ 86.

Wednesday’s market crash was a 2.1 million barrel drop from the U.S. last week, a 1.2 million drop from the industry’s forecast.

Products and warehouses also fell during the week, resulting in a normally rising oil market.

Biden was notified after a letter to the U.S. Federal Trade Commission announced the decline in the SPR, where he called for immediate action against oil and gas companies for “anti-consumer behavior”.

“I am writing to call your attention to the evidence of anti-consumer behavior by oil and gas companies,” Biden wrote in a letter to Federal Trade Commissioner Lina Khan. “The bottom line is that gasoline prices remain high at the pump, even as oil and gas company costs are falling.”

He added that the FTC had the power to investigate whether “illegal behavior” cost American families more than they had to pay at the pump. “I think you should do it right away.”

Although oil prices have fallen in the last 2 and a half weeks, WTI continues to grow by 61% a year, with Brent showing a 57% gain by the end of 2020.

Oil prices have risen almost steadily over the past seven months as OPEC + producer alliances have repeatedly rejected demands from the U.S. and other consumer countries for more supplies in response to growing demand from the global economy since the coronavirus pandemic resurgence.