Commodities
US Weighs SPR Release as Oil Prices Soar
US Energy Secretary Chris Wright suggested that Washington may release additional crude oil from the Strategic Petroleum Reserve (SPR) as prices surge and supply tightness intensify.
The current market situation, with West Texas Intermediate crude trading near $101 per barrel, is driving renewed demand for government stocks. This structure, known as backwardation, occurs when near-term prices exceed later delivery rates, making borrowing from the reserve commercially attractive.
The Energy Department has already lent more than 130 million barrels, or over three-quarters of the 172-million-barrel drawdown authorized by President Donald Trump in March.