The US has said that replenishing the Strategic Petroleum Reserve (SPR) could take years. In this connection, oil prices continued to decline – if by the morning of March 23, futures for Brent fell to $76.23 per barrel, and WTI to $70.40 per barrel, then on the morning of March 24 they fell even more.
So, at 4:12 GMT, Brent fell by 0.45% – to 75.57 dollars per barrel, according to Reuters. WTI futures fell by 0.46% to $69.64 per barrel.
“Oil prices fell sharply amid declines in European bank stocks, and also after US Energy Secretary Jennifer Grenholm said that replenishment of the country’s strategic oil reserve could continue for several years. Which would worsen demand prospects,” analysts explain.
They remind: in October-2022, the White House said that it would buy oil for the SPR when prices are at or below $67-72 per barrel. At the same time, Granholm told lawmakers that “this year it will be difficult to take advantage of low prices to replenish stocks.”
“The lack of purchases of crude oil for the SPR is a serious blow to the demand outlook. At the same time, this will put even more pressure on China to increase demand,” analysts said.
What will happen next
At the same time, according to forecasts, oil prices will rise significantly in the future. In particular, the material notes, Brent is expected to cost $97 per barrel in the second quarter of 2024.
“Demand from China – the world’s largest oil importer – continues to grow throughout the entire commodity complex. At the same time, its demand for oil exceeds 16 million barrels per day,” analysts explain.
As GLOBAL HAPPENINGS reported, meanwhile, the countries of the “Big Seven” (G7) with a high probability will not revise the price ceiling for Russian oil this week (started on March 20). Moreover, even despite the fact that the Russian Federation is now selling the resource, well below the current threshold of $60.
Source: Obozrevatel
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