The ongoing supply chain tensions in the United States seem to have reached a point of urgency. Biden wrote to FTC Chairman Lina Khan, urging the agency to “immediately use all tools” to investigate “potential illegal conduct” by oil companies for raising gasoline prices. Early this morning, there was news that the United States may release crude oil reserves in the form of sales or borrowing. However, the White House responded: No decision has been made on releasing oil reserves. It was previously reported that the United States asked India, Japan and South Korea to release oil reserves, but did not ask European countries to release them.
US EIA crude oil inventories unexpectedly fell sharply. The report showed that U.S. crude oil inventories fell by 2.101 million barrels last week to 433 million barrels, a decrease of 0.5%. Production fell by 100,000 barrels to 11.4 million barrels per day. However, as of the early morning closing of November 18, international oil prices closed down. WTI December crude oil futures closed down $2.40, or 2.97%, at $78.36 per barrel; Brent January crude oil futures closed down $2.15, or 2.61%. It was quoted at US$80.28/barrel.
The United States requires India, Japan, and South Korea to release oil reserves? Biden asked the FTC to investigate price gouging
Affected by multiple factors such as continued supply chain tensions, U.S. gasoline prices rose to a seven-year high, soaring 50% during the year. A few days ago, U.S. President Biden wrote to the U.S. Federal Trade Commission (FTC), urging the agency to “immediately use all tools” to investigate the “potential illegal behavior” of oil companies suspected of raising gasoline prices. But any FTC investigation is unlikely to have an immediate impact on retail gasoline prices.
The FTC is an independent agency and is not directly led by the White House. However, Lina Khan was nominated by Biden and the agency can choose to follow the president’s recommendations. It’s not unusual for state and federal regulators to launch price investigations when gasoline prices spike. These investigations rarely translate into actual legal action.
In a letter to FTC Chairman Lina Khan, Biden expressed concern about the gap between retail and wholesale gasoline prices, saying there is growing evidence that oil and gasoline companies Behavior that infringes on consumer interests.
In fact, the average price of gasoline in the United States rose by 50% in 2021, rising to a nearly seven-year high, but analysts believe that this is mainly due to rising crude oil prices, rather than wholesale and Disconnect between retail gasoline markets.
Early this morning, sources said that the United States may release crude oil reserves in the form of sales or borrowing. However, just now, the US White House spokesperson stated that no decision has been made on releasing oil reserves. There is news that the United States has asked India, Japan and South Korea to release oil reserves, but has not asked European countries to release them.
According to foreign media reports, the United States needs to release more than 20 million to 30 million barrels of crude oil reserves to get a response from OPEC.
According to CCTV news, the U.S. Department of the Interior is scheduled to auction a large number of oil and natural gas exploration rights in the Gulf of Mexico on November 17, local time. Associated Press reports show that the oil and gas fields involved are estimated to have reserves of up to 1.1 billion barrels of crude oil. This is the first batch of oil and gas resource exploration rights auctions since Biden took office as President of the United States. The auction was conducted online, and the total area of oil and gas fields bidding for mining rights reached 352,000 square kilometers, which is approximately twice the area of Florida.
As of the early morning closing of November 18, international oil prices closed down, with WTI December crude oil futures closing down $2.40, or 2.97%, at $78.36/barrel; Brent 1 Monthly crude oil futures closed down $2.15, or 2.61%, at $80.28 per barrel.
U.S. EIA crude oil inventories unexpectedly fell
November 18 In the early morning, data from the U.S. Energy Information Administration (EIA) showed that crude oil inventories fell more than expected last week, gasoline and refined oil inventories fell less than expected, and crude oil inventories increased in the Cushing area, the main delivery place for U.S. crude oil futures.
Specifically, crude oil inventories decreased by 2.101 million barrels, and were expected to increase by 1.2 million barrels, compared with an increase of 1.002 million barrels in the previous week. Crude oil inventories in Cushing, the main delivery place for U.S. crude oil futures, increased by 216,000 barrels, after falling by 34,000 barrels the previous week. This is the first increase in crude oil inventories in Cushing in six weeks. Gasoline inventories fell by 707,000 barrels, compared with expectations for a decline of 750,000 barrels, after falling by 1.555 million barrels the previous week. Refined oil inventories, including diesel and heating oil, fell by 824,000 barrels, compared with expectations for a decline of 1 million barrels, after falling by 2.613 million barrels in the previous week. Refinery equipment utilization rate was 1.2%, compared with 0.5% expected, and 0.4% in the previous week.
Natasha Kaneva and other JPMorgan analysts recently stated in a report that it is extremely unlikely for countries around the world to “coordinate the release of strategic oil reserves.” Analysts said the United States appears to be the only IEA member country looking forward to releasing oil reserves. However, the report said that with rising inflation and pressure from U.S. Senate Democrats, we believe the White House will ask the Department of Energy to implement a replacement agreement, speed up mandatory sales, or a combination of both. The replacement of large quantities of reserve oil may bring the current oil delivery volume in the United States to 30 million barrels, and then exchange it back when the supply returns to normal. The U.S. Department of Energy may also accelerate the sale of 18 million barrels of crude oil, which they originally planned to complete in the next three years. The White House has several options on hand to immediately release crude oil into a glutted market and is likely to choose at least one of them. </p
