Institution: Oil prices stopped falling and rose

U.
S.
EIA inventories fell, and although the United States continued to release strategic reserves, it was ready to replenish at low prices, and oil prices stopped falling and rising
.
NYMEX crude oil futures 11 contracts rose $2.
73 a barrel or 3.
29% to 85.
55; ICE oil futures 12 contracts rose $2.
38 a barrel or 2.
64%
at 92.
41.
China's INE crude oil futures main contract 2212 fell 9.
5 yuan to 662.
4 yuan / barrel, and rose 7.
5 yuan to 669.
9 yuan / barrel
in the night.

At present, the main logic that dominates oil prices is still the economic downturn expectation in the context of the Fed's interest rate hike VS the risk premium caused by the lack of spare capacity under OPEC+ control and the Russia-Ukraine conflict
.
From the news, first, Biden announced that he would add 15 million barrels from the SPR in December, extend the initial timeline, and fulfill the commitment of 180 million barrels, and if necessary, the Department of Energy is willing to sell more
after December.
However, it was then said that when the US oil price reached or fell below $72 / barrel, the United States would replenish the Strategic Petroleum Reserve (SPR), which indicates that the Biden administration is backing crude oil in disguise
.
Second, EIA inventory data was released yesterday, EIA crude oil inventories decreased by 1.
725 million barrels, gasoline decreased by 114,000 barrels, production increased by 100,000 barrels per day to 12 million barrels per day, and strategic inventories decreased by 3.
564 million barrels
.

On the whole, before the Fed's aggressive interest rate hike is not over, the long-term downward trend of crude oil remains unchanged, and the Biden administration said that it will replenish strategic reserves when oil prices are lower than $72 / barrel, which will play a favorable support for oil prices and promote the short-term upward trend of prices.