Traders will digest updated inventory data from the US Energy Information Administration (EIA) tomorrow. Nonetheless, demand is expected to ease over the winter as the impact of higher global rates trickles down through the global economy. That said, Biden appears to have his political motives as well, with the additional SPR release, as the midterms approach. The action is likely a response to OPEC's production cut, something the White House labeled as a politically motivated stunt. Moreover, the Biden administration is expected to order a December release of an additional 15 million oil barrels from the Strategic Petroleum Reserve (SPR) on Wednesday. Typically, peak hawkishness would bode well for demand-sensitive commodities like crude oil, but persistent and rising recession fears have put a lid on prices. Brent crude prices are higher as well.Ī peak in Federal Reserve rate hike bets has prompted a risk-on move in equity markets. WTI crude oil prices are slightly higher on Wednesday following a sharp 3.97% drop on Tuesday. WTI crude oil prices see a modest bounce after a sharp drop on additional SPR news Biden administration said to be considering extreme intervention measures in markets and crack spreads are moderating, which should drag on prices should the lull continue.
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