Starmade enterprise4/4/2023 The pending sale of more oil from the SPR isn't a concern for producers in the United Arab Emirates, UAE's energy minister Suhail Al Mazrouei told Bloomberg TV. The International Energy Agency last month called the global oil balance "well-supplied" at the start of 2023 but cautioned the market could quickly tighten as Western sanctions hurt Russian oil exports. No one has strong confidence with their US growth outlook, which means the market could go from pricing in a 'soft landing' to a short & shallow recession or even a 'classic recession,"' said Moya. "Oil could be in the danger zone if the bond market selloff intensifies and makes some traders price in deeper recession. Investors are watching for inflation to cool down further from its peak which could lessen pressure on the Federal Reserve to keep interest rates elevated. Prices for rent, food and energy increased on a monthly basis. The drop in oil prices Tuesday was also taking place as US consumer price inflation data showed prices eased in January, but it was by less than anticipated. The sales drew the SPR to its lowest since 1983. The Biden administration sold a massive 180 million barrels from the SPR last year after Russia's invasion of Ukraine disrupted supply and pushed crude oil prices past $100 a barrel. "The oil market was supposed to get a little tighter as energy traders were expecting the next move to be refilling the SPR," said Edward Moya, senior market analyst at Oanda, in a Tuesday note. Under the sale mandated by Congress, sweet crude will be sold from two storage areas starting April 1.īrent crude oil, the global benchmark, fell 1.5% to $85.40 a barrel but was off lows of the session. WTI was on track to close below $80 barrel after the US Department of Energy late Monday said it plans to sell 26 million barrels from the SPR. The decline was later pared to 1.2% to $79.13. West Texas Intermediate crude lost as much as 3.3% when hitting an intraday low of $77.46 a barrel. Oil prices dropped Tuesday after the US announced plans to sell more inventory from its Strategic Petroleum Reserve, adding to the global market's already-volatile crosscurrents in supply and demand.
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