Refilling the US SPR at WTI under $80 "places a strong floor under prices"

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Refilling the US SPR at WTI under $80 "places a strong floor under prices"

<p>These remarks come via ANZ on the oil market. </p><ul><li>Officials in the Biden administration are said to be considering refilling its strategic oil reserve if WTI crude oil falls below USD80/bbl. If so, it places a strong floor under prices at that level. </li></ul><p>As background the </p><ul><li>US has released more than 180mbbl onto the market, which has left the reserve at its lowest level since 1984.</li><li>Under IEA guidelines, inventories must be at certain levels as a buffer against future disruptions. </li></ul><p>More from ANZ:</p><ul><li>the market was also supported by prospect of strike action in the US. Rail unions are threatening to halt trains across the nation, which is a major delivery route of crude and refined products. </li><li>EIA's weekly inventory report was mixed, with a large build in crude oil and a fall in gasoline. The move in commercial crude oil stockpiles was driven by lower exports and weaker demand.</li></ul><p>---</p><p>The potential for a rail strike has been bubbling;ing away since Monday but is only now catching the attention of amrekts. </p><p>From earlier this week:</p><p class="text-align-start vertical-align-baseline">ICYMI:</p><ul class="text-align-start vertical-align-baseline"><li><a href="https://www.forexlive.com/news/us-railroad-strike-looks-likely-to-trigger-another-surge-in-food-price-inflation-20220911/" target="_blank" data-article-link="true" class="article-link article-link article-link article-link">US railroad strike looks likely to trigger another surge in food price inflation</a></li><li>More than 90,000 workers at the country's freight railroads could go on strike should the railroads fail to reach an agreement with unions by Friday, September 16</li><li>30% of US freight could halt</li></ul><p>Goldman Sachs are not fussed:</p><ul><li><a href="https://www.forexlive.com/news/goldman-sachs-on-us-railroad-strike-i-dont-think-its-a-black-swan-20220912/" target="_blank" data-article-link="true" class="article-link article-link article-link">Goldman Sachs on US railroad strike - "I don't think its a black swan"</a></li></ul><p>And, most recently:</p><ul><li><a href="https://www.forexlive.com/news/more-on-the-us-rail-strike-to-disrupt-supply-white-house-looking-at-air-freight-instead-20220914/" target="_blank" class="article-link">More on the US rail strike to disrupt supply - White House looking at air freight instead!</a></li></ul><p>Finally, a post from earlier today on movement at the US admin on the strike:</p><ul><li><a href="https://www.forexlive.com/news/white-house-official-on-plans-in-the-event-of-a-rail-strike-disrupting-supply-chains-20220914/" target="_blank" data-article-link="true">White House official on plans in the event of a rail strike disrupting supply chains</a></li></ul><p>---</p><p>Oil price update, not a lot of net change for the session so far:</p>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: Refilling the US SPR at WTI under $80 "places a strong floor under prices"

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