US, allies release 60M barrels of oil from stockpiles
U.S. crude hit $104 per barrel on Tuesday
Oil analyst on how high gas prices could go amid continued tension overseas
The Schork Group principal Stephen Schork argues the U.S. and Europe will ikely face rising oil and gas costs due to their energy policies amid the Russia-Ukraine conflict.
The United States and its allies agreed on Tuesday to a coordinated release of 60 million barrels of oil as prices surge amid the Russia-Ukraine conflict, but it failed to quell rising prices.
The International Energy Agency (IEA), which represents the consortium, says the withdrawal will come from the global strategic petroleum reserves led by the United States, which will add 30 million barrels.
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"The situation in energy markets is very serious and demands our full attention. Global energy security is under threat, putting the world economy at risk during a fragile stage of the recovery" said IEA Executive Director Fatih Birol in a statement.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 72.03 | -0.28 | -0.39% |
U.S. oil prices jumped 10% now trading above $105 per barrel mid-morning.
"While this sounds like a lot of oil it's actually on the low end of expectations and on the low end of what was rumored by the marketplace after the announcement the prices dipped down for a quick pop, but they came right back up," explained Phil Flynn, senior market analyst The Price Futures Group and FOX Business contributor.
Flynn also notes the 30 million barrels equals just one day's supply.
(Source: Thomson )
Brent Crude also remained above the $100 per barrel level.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 29.13 | 0.00 | 0.00% |
Oil majors traded higher in tandem with oil.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 120.35 | +1.76 | +1.49% |
| CVX | CHEVRON CORP. | 161.27 | +1.66 | +1.04% |
| OXY | OCCIDENTAL PETROLEUM CORP. | 50.90 | +0.40 | +0.78% |