Oil Rebounds After Rick Perry Rules Out Tapping Strategic Crude - Bloomberg:
Crude erased most of the day’s losses after U.S. Energy Secretary Rick Perry said the nation’s strategic oil reserves won’t be tapped to expand global supplies.
Selling some of those reserves would have a “fairly minor and short-term impact,” Perry told reporters in Washington on Wednesday. As sanctions squeeze Iranian crude out of global markets, there are opportunities for other major crude producers to fill supply voids, he said.
“This is a situation where the market expected U.S. President Trump to release oil from the reserves in November but that’s not going to happen,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The market all of a sudden looks a lot tighter.”
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