2023-04-12 17:45:54 ET
Crude oil prices popped Wednesday after Secretary of Energy Jennifer Granholm said the U.S. government could begin buying oil to replenish the Strategic Petroleum Reserve later this year "if it is advantageous to taxpayers."
Granholm's comments at an energy conference in New York contrasted with her remarks to Congress last month , when she said it would be "difficult for us to take advantage of this low price."
The Biden administration had said previously it would begin replenishing the emergency reserve - which has fallen to its lowest levels since the early 1980s - if U.S. oil prices fell to a $67-$72/bbl range.
Crude oil prices broke out after trading within a tight range during the past week, with front-month Nymex crude ( CL1:COM ) for May delivery settled +2.1% to $83.26/bbl and June Brent crude ( CO1:COM ) closed +2% to $87.33/bbl.
ETFs: ( NYSEARCA: USO ), ( BNO ), ( UCO ), ( DBO ), ( SCO ), ( USL ), ( DRIP ), ( GUSH ), ( USOI ), ( NRGU )
Oil prices have increased since the surprise decision by Saudi Arabia and other OPEC+ members to cut production, a move some said was motivated in part by Granholm's comments to Congress.
Despite the OPEC+ cut, a new report from the U.S. Energy Information Administration forecasts global crude supply will top demand in the next two years .
For further details see:
Crude oil jumps after Granholm says U.S. could start to refill reserve this year