Oil prices dropped on Wednesday after US petrol stocks fell more than expected last week, which could heighten pressure on the Biden administration to release oil from emergency reserves to cap soaring petrol prices.
US House majority leader Steny Hoyer said late on Tuesday that he did not agree with Senate majority leader Chuck Schumer’s call on Sunday for tapping the SPR to lower petrol prices, saying the reserve was there to fill a crude oil supply gap in times of emergency. “It seems the energy market is convinced that even if the US resorts to tapping the Strategic Petroleum Reserve, the benefits would be minimal ... to the US consumer,” Oanda analyst Edward Moya said in a note.
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