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The US will release 1 million barrels of oil per day from the reserve

Le Tuyen (Resident of Vietnam Television Station in the US)Friday, April 1, 2022 17:09 GMT+7

According to this plan, every day 1 million barrels of oil will be exported from oil reserves strategic and can last for 6 months. The energy market reacted immediately in the night trading session of March 31 (Vietnam time).

Immediately after it was announced that the reserve oil valve would be opened soon, the price of US crude oil (WTI) futures dropped sharply. Closing the session on the New York Mercantile Exchange, this oil fell to approximately $100/barrel. North Sea Brent oil also lost more than 5% of its value.

The release of 1 million barrels a day, or 180 million barrels for the whole batch, is the highest in US history.

There is no specific calculation on the impact of this plan on consumer gasoline prices, but the US Government’s target can reduce gasoline prices by up to 35 cents/gallon (about 1800 VND/liter).

The Organization of the Petroleum Exporting Countries (OPEC) and its allies have also said that they still maintain their plan to increase output by only 432 thousand barrels per day in May.

The US is waiting for other allied countries to see how much oil reserves it will open, but Wall Street estimates that there may only be a maximum of 50 million barrels more.

The opening of US oil reserves at the largest level is likened to only a “temporary patch”. The country is also calling for private businesses to reopen and speed up progress oil extraction. Because of the additional 1 million barrels of oil from the warehouse, the US’s own demand is already 700,000 barrels, making up for the banned imports from Russia.

Meanwhile, to completely replace supply from Russia, the US and its allies need up to 3 million barrels of oil per day.

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