Inflation pressure causes oil prices to drop, and oil prices fall as a result.
Oil prices fell on Tuesday following the announcement by the U.S. government that it would release additional crude oil from its Strategic Petroleum Reserve. Traders are also monitoring U.S. inflation data to see if there have been any further drops.
Brent crude futures dropped 80 cents or 0.9% to $85.81 per barrel by 1003 GMT. U.S. crude futures plummeted $1.05 or 1.3% to $79.09 per barrel. Both benchmarks are poised for the largest daily percentage drop in their respective benchmarks since February 3.
The U.S. The U.S. Department of Energy (DOE), announced that it would sell 26,000,000 barrels of oil from SPR. This is the lowest level of oil sales since 1983.
Why is It Necessary to Clean Vent Hoods for Optimal Safety and Performance
After the record-breaking 180 million barrels sold by the Reserve last year, the DOE considered cancelling the fiscal year 2023 sale. However, Congress would have to act to modify the mandate.
"Oil prices dip on U.S. crude reserve release, inflation pressure"https://t.co/3jNHKDgObc
— Hedge_Reaper (@Hedge_ApeRadio) February 14, 2023
After the Energy Information Administration announced that it expects record March production from seven of the largest U.S. Shale basins, supply concerns eased as well.
After the devastating earthquake in the region, crude oil exports were resumed at a port in Turkey.
On Tuesday, the Organization of the Petroleum Exporting Countries will release its monthly reports. The International Energy Agency (IEA), on Wednesday, will provide the report.
The U.S. consumer prices index (CPI), data for January, will be a key indicator for traders. The U.S. monthly consumer price index (CPI) rose in the past two months.