- The U.S. will tap its strategic reserves in a coordinated effort with China, Japan, India, South Korea, and the U.K. (Bloomberg)
- A total of 50 MMBbl will be released, with 32 MMBbl coming from the U.S. SPR as an exchange over the next several months. The White House said 18 MMBbl would be an accelerated release from previously authorized sale
- The move is likely bearish now but more bullish later as a significant chunk is borrowed to be returned later, possibly resulting in tighter balances down the line
- Click here to see the official White House press release
- OPEC+ members warned Monday that there are likely to respond to plans by nations to release oil from their reserves
- Delegates from OPEC said a coordinated release of oil inventories from their biggest customers is unjustified by current market conditions and may have to reconsider plans to add more oil production when they meet next week (BBG)
- “Such a move would potentially raise the stakes in the oil poker hame and could produce new strains in the bilateral relationship between Washington and Riyadh, “ said Helima Croft, chief commodities strategist at RBC Capital Markets