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Prices rebounded around Friday afternoon following reports that the Trump administration could operate an oil reserve urgently before the midterm elections.
West Texas Intermediate fell 0.5% to $ 70 per barrel at 3:25 pm AND. Crude, the international benchmark, rose 0.75% to $ 75.09.
The Trump administration "is actively considering" a release of the strategic oil reserve, the largest oil stock in the world, sources told Bloomberg. Options being revised range from a test sale of 5 million barrels to a larger release of 30 million barrels.
The White House did not respond to an email earlier this week asking for a comment on whether the administration is considering a release.
Potential release could come before the mid-term elections in November, where rising prices at the pump could hurt Republicans in competitive races. Marketing could at least temporarily mitigate global supply concerns that have pushed energy prices to their highest levels in four years.
The RPD is primarily intended to constitute an emergency reserve to which the United States may resort in the event of war or natural disaster. But non-urgent releases may be allowed to respond to minor disruptions in supply or to increase federal revenues, according to the Department of Energy.
WTI is up 52% from one year to the next.
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