(Bloomberg) — Oil dropped by more than $5 a barrel in a matter of minutes after a report that the Biden administration is considering releasing about 1 million barrels a day from its strategic reserves for several months.
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The overall release could be as much as 180 million barrels, according to people familiar with the plan, and an official announcement may come later Thursday. It would be significantly bigger than recent reserves sales by the U.S. and the country may be joined by allies as part of an effort coordinated by the International Energy Agency.
Here’s what some top analysts have to say about the impact:
Goldman Sachs Group Inc.
A potential release of crude from the Strategic Petroleum Reserve would help the market to re-balance this year, but it won’t solve a structural deficit for oil, analysts including Damien Courvalin said in a note. A release would reduce the amount of necessary price-induced demand destruction, but it’s not a persistent…
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2022-03-31 07:21:59