COM - SPR reactions and US oil production update

Thursday, the Department of Energy released final monthly production statistics for January; weekly DOE estimates pointed to production of 11.6mb/d in January, though the final monthly tally released Thursday came in at 11.4mb/d; down 200kb/d from December levels, but up ~300kb/d from January 2021.  Following the White House SPR announcement Thursday, crude markets (CL1:COM) stabilized, down ~4.5% from the time rumors of an impending announcement emerged. Trafigura's Chief Economist made an appearance on Bloomberg TV following the announcement, indicating that "because you're sending a signal to producers that by releasing the oil, we're bringing prices down and that's going to disincentivize the investment we need." The Economist went on to note that although near-term prices fell, prices for crude oil delivered in 2023 rose on the back of the announcement. Goldman's oil strategist released a report following rumors of the announcement, indicating that "such a release would therefore not resolve the

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SPR reactions and US oil production update