Oil Prices to Drop as Low as $62 by End of Next Year? (EIA Report)

Last week, OPEC decided at its meeting to not increase oil production beyond what was already agreed. Almost immediately after OPEC’s decision, a spokesperson from the White House said: “Opec+ seems unwilling to use the capacity and power it has now at this critical moment of global recovery for countries around the world,”

“Our view is that the global recovery should not be imperilled by a mismatch between supply and demand.”

“The President believes Americans should have access to affordable energy, including at the pump, and has directed us to continue monitoring the markets and be prepared to use all tools as needed”

Saudi Arabia responded by saying OPEC was acting as a responsible regulator. Their energy minister said. “What we have seen over the past few months again and again and again is that energy markets must be regulated otherwise things will go astray,”

This meant Biden was going to have to back up his words. For the past few days people have been analysing what options may be possible. The one the market seemed to latch onto was for the US to release some of their own strategic petroleum reserves (SPR).

The US has over 600 million barrels held for emergencies and has enough crude to replace all US oil imports from…