April 1, 2023

MUI Daily News

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Russian military says it wants to “evacuate” people of Kherson in the face of advancing Ukrainian troops

The US will draw an additional 15 million barrels of oil from its reserves

The United States will draw an additional 15 million barrels from its strategic reserves to deal with rising oil prices linked to the Ukraine invasion, a government official said on Tuesday.

The new drilling, to be carried out in December, is the last part of a plan announced by Joe Biden in the spring, which plans to release a total of 180 million barrels.

News of this additional use, published by several US media outlets during the day on Tuesday, was enough to push crude prices lower. West Texas Intermediate (WTI), the US benchmark for delivery in November, settled down 3.08% at $82.82 a barrel.

Joe Biden has not ruled out drawing down US reserves even further. “The President has asked the Ministry of Energy to be ready to sell more [pétrole tiré des réserves] If necessary this winter, due to Russia or other market-disrupting actions”The official told reporters.

At the same time, the US president plans to put in place a mechanism to replenish the strategic reserves in the long term. The US government will start buying back crude oil when the price of WTI falls between $67 and $72. Management plans to negotiate repurchase agreements at pre-agreed prices through a bidding process, which will limit risks associated with price volatility, the official said.

Since the beginning of September 2021, the United States has drawn down more than 212 million barrels of strategic reserves, the lowest level since June 1984. The President also called on oil companies. “Offer customers lower energy prices instantly”According to the manager. “It is unacceptable to keep prices high when costs are falling.”He insisted.

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