Why did crude fall today

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Fraser921
Posts: 2953
Joined: Mon Mar 22, 2021 11:48 am

Why did crude fall today

Post by Fraser921 »

Crude oil prices dropped back $0.94/bbl to settle at $69.96/bbl on Thursday, primarily due to comments from Energy Secretary Granholm that it may be several years before the Strategic Petroleum Reserve (SPR) is refilled. Last year when the 180 MMbbl SPR release was announced, the Biden administration said that the volumes would be replaced when the price of oil drops below $70/bbl. It now looks like that is unlikely to happen. In fact, the Energy Department has plans to release another 26 MMbbl in the next few weeks, its standing congressional mandate.

I posted last week that Biden lied and he wouldn’t refill in part that the us has no money. He lied to energy companies to drill then screws them. Brandon will leave the problem to the next guy
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Why did crude fall today

Post by dan_s »

Just remember that global demand for oil-based products, primarily transportation fuels, will exceed supply within a few months no matter what Team Biden does. Per IEA, not me.

MY TAKE: Team Biden will not do anything to help U.S. oil companies.

I will be discussing this on next Tuesday's panel discussion.
Dan Steffens
Energy Prospectus Group
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