Joe Biden Makes Crude Oil Prices Strengthen: WTI USD 85.55 per Barrel, Brent USD 92.41 per Barrel

Banaspati -- Oil prices were strong at the end of trading Wednesday time on the spot or Thursday morning, halting a 3-day streak of tape. This comes after data showed a reduction in U.S. crude stockpiles and information on whether the country would release more crude from its reserves.

West Texas Intermediate crude oil futures for November transport, were 2.73 U.S. dollars or 3.3 percent, so stayed at $85.55 a barrel on the New York Mercantile Exchange.

Brent crude oil futures for December hauls added $2.38 or 2.6 percent, so they closed at $92.41 a barrel on the London ICE Futures Exchange.

The U.S. Energy Information Agency (EIA) gave a report on Wednesday that the country's commercial crude stockpiles fell by 1.seven million barrels during the week ending Oct. 14. In that regard, several studies surveyed by S&P Global Commodity Insights predicted a 1.two million barrel reduction in U.S. crude oil supply.

According to the EIA, overall motor gasoline stocks fell by 0.1 million barrels last week, while refined fuel stocks rose by 0.1 million barrels.

The United States is rumored to be releasing more and more crude oil from its reserves. In its initial session, reference prices reached a level as low as two weeks after US President Joe Biden explained he planned to release 15 million barrels of oil from the Vital Oil Reserves (SPR).

"In reality, SPR is a short-period bearish, a long-term bullish because in the end you have to buy back," said Gary Cunningham, director of market research at Tradition Energy as taken by Reuters. "The whole market continues to swing wildly and spin because of erratic information."

Biden, in his remarks Wednesday, October 19, 2022, wrote the IDEA of the US to buy back oil for reserves if prices fall enough. The release of those reserves could be the most recent marketing of the 180 million barrels of oil marketing ideas published shortly after Russia invaded Ukraine in February.

The United States, which wants to release more and more crude oil from its reserves, is giving oil prices an advantage.

According to CNBC, Thursday (10/20/2022) Brent crude oil futures for the December freight contract, the international basis, closed up USD2.38, or 2.6 percent, to USD92.41 per barrel.

In that regard, United States base, West Texas Intermediate (WTI) crude oil futures for the November contract, which ended Thursday, soared USD2.73 or 3.3 percent to USD85.55 per barrel.

"In reality, the release of SPR is a short-period bearish, a long-period bullish because in the end America has to buy back," said Gary Cunningham, Director of Tradition Energy.

In its initial session, crude oil futures reached a level of at least two weeks after US President Joe Biden explained he planned to release 15 million barrels of oil from the Taktikc Petroleum Reserve (SPR).

Biden, in his confession Wednesday, wrote the U.S. idea of buying back oil for those reserves if prices fall. The release of those reserves could be the most recent marketing of the 180 million barrels of oil marketing ideas published shortly after Russia invaded Ukraine in February.

Oil prices have been strong since OPEC agreed to reduce its production target by about two million barrels daily - although that is predicted to cover only about 1 million barrels of actual output reductions.

"They want Brent around USD90, so they're going to get it and they're going to continue to cut output to keep that number," Cunningham said.

American crude stockpiles fell last week - a 1.seven million-barrel decline, according to the administration's weekly data, compared with expectations for a 1.four million-barrel gain. The SPR rate shrank by 3.six million barrels to 405 million, the lowest level since May 1984.

The European Union's late ban on Russian crude and oil products and the reduction in output from the Organization of the Petroleum Exporting Countries and other producers counted as Russia, the line known as OPEC Plus, of two million barrels daily provide price support.

The European Union's threat to Russian crude oil took effect in December, and the threat to its oil products took effect in February.