Multinationals release rumors of strategic oil reserves causing a sharp drop in international oil prices

As the US’s commercial crude oil inventories surged last week, and countries such as the United States, Britain, France and France are discussing the release of strategic oil reserves, international oil prices have fallen sharply on the 28th.

On the same day, the US Energy Information Administration released data indicating that in the week ending March 23, US commercial crude oil inventories increased by 7.1 million barrels, which was the largest increase since July 2010 due to a surge in imports. During the week, US oil imports increased from 8.2 million barrels a day in the previous week to 9.3 million barrels. U.S. domestic oil supply surged, severely curbing oil prices in the New York market.

However, the report shows that the US gasoline stocks fell by 3.5 million barrels in the week and distillate stocks decreased by 700,000 barrels.

In addition, there was another report on the same day citing "reliable" sources that France is discussing with the United States and Britain about the release of strategic oil reserves.

The French government is in contact with the United Kingdom and the United States to discuss the possibility of using strategic oil reserves to stabilize the price of crude oil. On the 27th, France’s “Le Monde” quoted officials from the Elysee Palace as saying that the use of strategic oil reserves “is a matter of weeks rather than days”. However, the French President’s Office and the Department of Energy did not respond to this report.

Faced with the trend of high oil prices, two British officials said earlier this month that the British side is working with the United States and is expected to use a certain amount of strategic oil reserves within a few months.

Although it is only an rumors, it has already affected market expectations. Analysts generally speculate that the United States, Britain, and France may release strategic oil reserves in the coming weeks, and oil prices will therefore fall.

In economic data, US durable goods orders in February rebounded by 2.2%, worse than market expectations. However, tensions in the Sudan and the Iranian nuclear issue remain. Geopolitical factors limit the decline in oil prices.

At the close of the day, the price of light crude oil** delivered by the New York Mercantile Exchange fell by $1.92 to settle at $105.41 a barrel, a decrease of 1.79%. In May, London Brent crude oil prices in the North Sea fell 1.38 US dollars to settle at 124.16 US dollars a barrel, a decrease of 1.10%.