EROTF - China's PMI Disappoints U.S. Getting More Serious About Deploying SPR

• The poor Chinese March PMI and talk that the US could tap its strategic oil reserves by as much as one million barrels a day for six months have rippled through the capital markets.
• The dollar found support ahead of JPY121.10, which is the (38.2%) retracement of the rally since March 4 that began from around JPY114.65 and peaked this week slightly above JPY125.00.
• We have argued that Biden administration has been thinking too small in its previous two efforts to draw down its Strategic Petroleum Reserves if it wants to have more impact on energy prices.

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