NRGO - Crude sinks 6%: SPR release weighs on oil market as OPEC meets

The Biden administration is weighing a plan to release around 180M barrels of oil from the Strategic Petroleum Reserve, in what be the largest release from stockpile since it was created in 1975. WTI crude futures (CL1:COM) tumbled 6.7% to $100.53 on the news, while Brent futures (CO1:COM) fell 7.3% to $110.23. The coming SPR decision would likely see 1M barrels released daily over the course of six months, but analysts are still debating its benefits and whether it would put a dent in the inflationary forces seen in the current environment. Commentary: "Stocks of strategic oil have a limit and flows of commercial oil do not. Flows that stop are a bigger problem than strategic stocks can solve over time," said Kevin Book, energy policy analyst at ClearView Energy Partners. "Historically, SPR releases have temporarily sent oil prices lower and are then followed by higher prices as the market prices in insufficient supply,"

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Crude sinks 6%: SPR release weighs on oil market as OPEC meets