from its Strategic Petroleum Reserve over the next six months.
Future contracts were largely unmoved by the announcement, however, suggesting that while short-term prices might be discounted, the release wouldn’t solve the crisis hitting energy markets. Following the current drawdown, the inventories remaining in the SPR will fall to 300 million barrels, below the 315 million barrels required for the US to be compliant with its IEA obligations to hold 90 days of net import cover in strategic reserves.
It remains to be seen whether further US supply will be forthcoming. Oil drillers have already said they are, saying steel shortages, higher wages, environmental regulations and broader cost pressures are already crimping margins. Mr Putin has demanded buyers begin purchasing the country’s oil and gas using the Russian rouble instead of euros or US dollars.
180 Million Bbl (even the entire stock of 900 Million Bbl) will not be able to quest the thirst … Russia export 5 M bbl per day, discounting the sanction - the supply is still several millions short of the preCovid demand. renewables and fast track nuclear may help.