These remarks come via ANZ on the oil market.
- Officials in the Biden administration are said to be considering refilling its strategic oil reserve if WTI crude oil falls below USD80/bbl. If so, it places a strong floor under prices at that level.
As background the
- US has released more than 180mbbl onto the market, which has left the reserve at its lowest level since 1984.
- Under IEA guidelines, inventories must be at certain levels as a buffer against future disruptions.
More from ANZ:
- the market was also supported by prospect of strike action in the US. Rail unions are threatening to halt trains across the nation, which is a major delivery route of crude and refined products.
- EIA’s weekly inventory report was mixed, with a large build in crude oil and a fall in gasoline. The move in commercial crude oil stockpiles was driven by lower exports and weaker demand.
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The potential for a rail strike has been bubbling;ing away since Monday but is only now catching the attention of amrekts.
From earlier this week:
ICYMI:
- US railroad strike looks likely to trigger another surge in food price inflation
- More than 90,000 workers at the country's freight railroads could go on strike should the railroads fail to reach an agreement with unions by Friday, September 16
- 30% of US freight could halt
Goldman Sachs are not fussed:
And, most recently:
Finally, a post from earlier today on movement at the US admin on the strike:
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Oil price update, not a lot of net change for the session so far:
