We saw this coming didn’t we? Crude back to price levels seen BEFORE the reserve release by IEA
Sam Fletcher
OGJ Senior Writer
HOUSTON, June 30 — Crude oil prices continued to climb June 29 with crude escalating 2% in New York, back to levels prior to the International Energy Agency’s announcement of the pending release of 60 million bbl from members’ emergency petroleum reserves.
Just a week ago, IEA announced it would release the crude and product from emergency reserves in an effort to drive down oil prices. Now the “flat price is already back to its pre-IEA level, and Brent has regained most of its premium to West Texas Intermediate,” said Olivier Jakob at Petromatrix, Zug, Switzerland. “From the price action, we have to conclude either that the supply and demand is so tight that 30 million bbl of sweet oil release from the US Strategic Petroleum Reserves does not matter or that the futures markets are disconnecting from the reality of the physical markets,” he said.
