WASHINGTON (Realist English). The United States continues to use its Strategic Oil Reserve to reduce world prices for this raw material, reports Oilprice.com.
“About 1 million barrels per day have been drained from the Strategic Petroleum Reserve through October, at an unprecedented pace. The drain means SPR inventories fell to the lowest since 1986. US crude futures are above $100 per barrel and gasoline and diesel prices above $5 a gallon in one-fifth of the nation. US officials have said oil prices could be higher if the SPR had not been tapped, and for once they are right,” points out the publication.
Matt Smith, lead oil analyst at Kpler said that “crude and fuel prices would likely be higher if (the SPR releases) hadn’t happened, but at the same time, it isn’t really having the effect that was assumed.”
Crude inventories are the lowest since 2004 as refineries run near peak levels. Refineries in the U.S. Gulf coast were at 97.9% utilization, the most in three and a half years.
“This means even the smallest accident can and will sell oil prices to the moon,” states the review by Oilprice.com.
It is specified that shipments of American oil from the SPR are being shipped to Italy, the Netherlands, India and China.