“We are definitely going to see some price reduction on the pump,” Tom Clolo, president of the Petroleum Price Information Service, told CNN on Friday.
“It looks like the 2021 peaks are in place,” says Cloza.
The lockdown is fueling fears over the oil market, with serious new health restrictions limiting economic recovery and consuming energy.
“Signs of interest are very volatile today,” wrote Reissad Energy, a senior oil market analyst, in a statement on Friday. The danger is real in Europe, especially if Austria’s blockade affects the continent. If Germany is the same, prices could be below $ 80.
Will China and the United States cooperate?
The Biden administration alone will have a greater impact on the strategic Petroleum Reserve than the two largest energy consumers in the world.
Officials in China said in a statement on Friday that the country’s emergency response barrel was on the table.
“The bureau is currently making progress on crude oil production,” Chinese strategic oil officials told CNN.
According to a White House press release, US President Joe Biden and Chinese President Xi Jinping discussed “the need to take steps to tackle global energy supply” at a virtual conference this week.
It could be used as a bargaining chip to open pipelines in the coming months for OPEC + in the United States and China.
“There is a concerted effort,” says Robert Yugger, future director of energy at Mizuho Security.
Still, this is not a long-term solution, as releasing barrels from a stockpile does not solve supply-demand imbalances. And these emergency stocks contain a certain amount of oil – crude oil is usually protected by supply shocks, but does not increase demand during economic recovery.
Releasing barrels today will reduce stockpiles for further crises, hurricanes, Middle East crises or other supply shocks.
Goldman Sachs reiterated in a new report to customers on Thursday that the integrated release “provides only a short-term structural defect.”
Wall Street Bank argues that this integrated release is now “fully worth it,” meaning that the impact on markets has already occurred.
Goldman Sach Strategy: “If such a release is confirmed and the oil price is kept low until the end of the year, there will be clear risks to the 2022 price forecast,” Goldman Sachs wrote.
In other words, at least some of them are watching this emergency intervention on Wall Street – before it happens – and forecasting higher prices in the future.