Oil rises as Joe Biden’s energy remarks fail to pacify markets
- The president confirmed the US is releasing 15 million barrels from the strategic reserve but did not take measures to curb fuel exports
- A pending European Union ban on Russian crude and oil products is also keeping prices up
Oil rose as traders shrugged off US President Joe Biden’s remarks about taming energy prices.
West Texas Intermediate futures rose 3.3 per cent to settle above US$85 a barrel. In a speech on Wednesday, Biden confirmed the US is releasing 15 million barrels from the nation’s strategic reserve but did not announce any other steps that might pull back prices, such as plans to curb fuel exports.
“The change in tone is subtle but not missed by the market,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.
“Biden did not ban product exports which was something many in the market have been worried about.”
“Realistically an SPR [Strategic Petroleum Reserve] release is near-term bearish, long-term bullish because eventually you’re going to have to buy it back,” said Gary Cunningham, director of market research at Tradition Energy.