The DOE had considered canceling the annual sale after US President Joe Biden’s administration sold a record 180 million barrels from the reserve last year to combat soaring fuel prices that had risen due to to Russia’s war against Ukraine and as global consumers emerged from the COVID-19 pandemic. But that would have required Congress to act to change the mandate.
Brent futures for April delivery fell 96 cents, or 1.1%, to $85.65 a barrel. March US West Texas Intermediate crude futures fell $1.08, or 1.35%, to $79.06 a barrel.
Both benchmark contracts fell by more than $2 earlier in the session but pared losses after data showed US inflation accelerated to its slowest annual pace since late 2021. which increased the likelihood of less aggressive interest rate hikes by the Federal Reserve.
“Financial markets are still trying to digest the CPI report, with rate hike expectations going up and down and weighing on asset classes like oil,” said UBS analyst Giovanni Staunovo. “With US stock markets rising, oil is paring some of its earlier losses,” he said.
Oil prices also recouped some losses after the Organization of the Petroleum Exporting Countries raised its 2023 oil demand forecast by 100,000 barrels per day in a monthly report, citing the reopening of the Chinese economy after COVID restrictions. .
Source: Ambito
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