Letter from Houston: Omicron moves the dial
Covid-19 variant sends oil price tumbling as SPR release makes little impact
US president Joe Biden’s long-heralded announcement on 23 November that the country would release 50mn bl of crude from its Strategic Petroleum Reserve (SPR) had only a small impact on crude prices, mainly because the market quickly worked out that the headline figure was somewhat misleading. Similar vague announcements from the UK (which has no SPR) and several Asian allies did not impress market participants either. Firstly, 18mn bl of the volumes released by the US were already planned to be sold by end-2022, as required by Congress. And secondly, the remaining 32mn bl—although genuinely new volumes—will be put on the market on an exchange basis, being released gradually over four months
Also in this section
19 April 2024
Cairo’s currency problems have hindered investment, but Pharos sees considerable potential as Egypt emerges from crisis
18 April 2024
The Norwegian energy company is concentrating its efforts on specific regions and assets that meet strict cost and carbon criteria
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy