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The US may Ccontinue to Release Oil from Strategic Reserves

9/19/2022 1:37 PM

Benchmark Brent Crude Oil prices are correcting above 90.00.

Yesterday it became known that a group of congressmen from the Democratic Party sent a letter to US President Joe Biden, in which they called for the continued oil release from strategic reserves at least until the end of the year. The semi-annual initiative to release reserves of raw materials ends in October, and, according to officials, its goals are still not achieved. Democrats are urging Biden to use $121M from the Strategic Petroleum Reserve (SPR) to resupply. Earlier, the US Department of Energy reported that hydrocarbon reserves in reserves fell to a minimum since 1984, amounting to 434.1M barrels, and if the release continues until the end of the year, this value could fall below 400M barrels, which has not been seen for more than 50 years.

According to the latest report from the US Commodity Futures Trading Commission (CFTC), the number of net speculative positions in crude oil last week increased to 227.1K from 214.5K, but this is a local increase that does not reflect the overall trend towards a reduction in transactions, which continues since the beginning of May when the average number of positions was 330.0K contracts.

On the global chart of the asset, the price is moving within the downwards corridor, preparing to renew the local low.

Technical indicators maintain a sell signal: fast EMAs of the Alligator indicator are located below the signal line, and the AO oscillator histogram forms down bars in the sell zone.

Resistance levels: 92.12, 99.23. | Support levels: 86.98, 80.72

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