Oil resumes rally, U.S. reserve release seen as unlikely
Oil futures rebounded on Thursday, as the market deemed it unlikely that the United States would release emergency crude reserves or ban exports to ease tight supplies.
Brent futures rose 87 cents, or 1.1%, to settle at $81.95 a barrel, while U.S. crude gained 87 cents, or 1.1%, to settle at $78.30 a barrel.
Earlier in the day prices at both benchmarks dropped $2 a barrel.
The U.S. Department of Energy said all “tools are always on the table” to tackle tight energy supply conditions in the market.
The department made the comment amid questions about whether President Joe Biden’s administration is considering tapping into its Strategic Petroleum Reserves (SPR) or pursuing a ban on oil exports to bring down the cost of crude oil.
Meanwhile, Biden’s national security adviser urged energy suppliers to lift flows to meet demand, saying that the United States is concerned about their failure to do so.
Reference: CNBC
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