- WTI is trading higher despite bearish factors like U.S. SPR releases and uncertain Chinese demand
- President Biden is expected to announce the sale of an additional 15 MMBbl of crude from reserves in December
- The market focus remains on demand losses brought on by China's strict Covid restrictions and economic slowdown
- Biden administration plans to release 15 MMBbl of crude from the SPR and may consider additional releases this winter in an effort to lower the high cost of fuel and energy (BBG)
- Biden will announce the plan today, and barrels are expected to hit the market in December
- This latest release will be part of the final tranche of released crude from the 180 MMBbl programs that started in May
- The White House also announced new details on its plan to replenish the SPR, which contained 405.1 MMBbl out of a total capacity of 714 MMBbl as of last Friday
- The White House plans to initiate purchases when WTI is at or below $67-$72/Bbl
- “This repurchase approach will protect taxpayers and help create certainty around future demand for crude oil. That will encourage firms to invest in production right now, helping to improve U.S. energy security and bring down energy prices that have been driven up by Putin’s war in Ukraine,” said the statement