May 23, 2017

WINNING THE WoT:

U.S. plan to sell oil reserves undermines OPEC supply management efforts (Henning Gloystein, 5/22/17, Reuters)

The White House requested in its budget released late on Monday gradually selling off the nation's Strategic Petroleum Reserve (SPR) starting in October 2018 to raise $16.5 billion. The U.S. SPR SPR-STK-T-EIA holds 688 million barrels, making it the world's largest reserve, and a release of half over 10 years averages about 95,000 barrels per day (bpd), or 1 percent of current U.S. output.

The plan came out just a day after Trump left Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), as part of his first overseas trip.

The U.S. has more leeway to release the SPR crude as its own production C-OUT-T-EIA has surged 49 percent over the past five years. But the move undermines OPEC's efforts to tighten global oil markets by cutting their output this year and likely into 2018.

Posted by at May 23, 2017 5:06 AM

  

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