Oil Reserve Exchange May Influence Bitcoin Prices Before Oil Delivery
The US Department of Energy has announced an exchange for up to 40 million barrels of crude oil from its Strategic Petroleum Reserve. The solicitation was made on September 29, with bids due October 6 at 11 a.m. Central Time.
The deliveries under awarded exchanges are scheduled for November and December, which means the newly offered oil cannot reach buyers before the next inflation reading. The Bureau of Economic Analysis has scheduled its August personal income and outlays report for September 30 at 8:30 a.m. Eastern, including the personal consumption expenditures (PCE) price index.
The DOE offer could affect Bitcoin through changing expectations on oil prices, which in turn can impact inflation expectations, bond yields, and Federal Reserve rate outlooks. However, available figures do not show that this particular announcement has already moved any of those markets or Bitcoin.