Just saw the news that President Donald Trump ordered the release of 172 million barrels from the U.S. strategic petroleum reserve to help deal with rising oil prices tied to tensions with Iran.
Energy Secretary Chris Wright also said the move is meant to reinforce U.S. energy security and stabilize the market.
What caught my attention is that oil is sitting around $92 right now, and a supply injection this big could affect short-term price action.
Sometimes reserve releases cool prices temporarily, but geopolitical risk can also keep pushing oil higher, so it’s not always straightforward.
I mainly trade CFDs rather than physical commodities, so I’ve been watching oil markets through platforms that list them (I noticed it on Bitget’sCFD markets earlier while checking price action).
Love to know what others think in regards to this news:
Does a release like this actually slow the rally?
Or does geopolitical tension keep oil elevated anywayss?..
US releasing 172M barrels from strategic reserve, oil around $92rn, could this cool the rally?
byu/V0idScribe inenergy
Posted by V0idScribe
5 Comments
did you check the details on that release? not instantly, over 120 days, really all it did was tell everyone this problem is not going away this year. Now people will start doing math and understand that unlike what they stated, the world has been royally FUCKED by trump and Israel. Expect this to intensely affect world trade of everything between any country and the USA. If anything it will show most of the citizens of the world who to hate the most.
Things in the Gulf are only getting worse tbh.
The SSR can release 4.4 million gallons per day, so that is 39 days. We use 20 million per day.
Considering there’s two burning oil tankers in the gulf that are nowhere nowhere near the Hormuz…
On one hand: supply boost
On the other hand: implies supply issues in straits expected to continue.