Replenishment of strategic Oil reserves in the US is postponed – Commerzbank
Trump is also lagging behind his own ambitions on another important point of his energy policy agenda, Commerzbank's commodity analyst Carsten Fritsch notes.
US shale Oil industry is likely to lack important support
"At the beginning of his second term in office, Trump emphasised that he wanted to replenish the strategic Oil reserves quickly. Last week, however, the US Department of Energy announced that the replenishment planned for this year would not take place as quickly as initially thought. The reason given was maintenance work at the storage facilities."
"Of the 15.8 million barrels bought by the Biden administration for January to May, only 8.8 million barrels have been delivered so far. The quantities already secured through previous solicitations and exchanges have been rescheduled through the end of the year, a spokesperson for the ministry told Reuters."
"As a result of the lower reserve purchases, the US shale Oil industry is likely to lack important support, which, in addition to the low prices, argues against an imminent recovery in drilling activity."
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FXStreet Insights Team
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