The United States considers releasing strategic oil reserves again U.S. oil once gave up intraday gains and turned lower

According to two people familiar with the matter, the Biden administration in the United States is considering coordinating with allies to reuse its emergency oil supply, the release of the Strategic Petroleum Reserve (SPR), in response to the surge
in oil prices caused by Russia's actions against Ukraine.

Affected by the news, WTI crude oil futures once gave up intraday gains on Wednesday turned lower, Brent crude oil futures were stable, as of press time, WTI crude oil futures are now up 1.
10% at $93.
11 / barrel, Brent crude oil futures are up 0.
41% at $94.
78 / barrel
.
Separately, the premium of Brent crude over WTI crude surged to nearly $5/barrel, the highest level
since April 2020.
Spencer Vosko, head of crude oil at Black Diamond Commodities LLC, said international benchmark crude prices are strengthening
amid concerns that escalating tensions between Russia and Ukraine could lead to disruptions to energy supplies.

People familiar with the matter said that while no decision has yet been made, there are "active communications" within the Biden administration, including potential price point triggers and how to coordinate with other countries to release reserves
.
Currently, the Biden administration is conducting modeling to determine the size and scope of
any potential strategic reserve release.

White House press secretary Jen Psaki responded: "This is certainly an option
we are discussing.
We are working hard and focused on working with our peers and partners around the world to take all possible steps to minimize the impact
on the global energy market.
”

This follows a move by the White House in November to approve the release of 50 million barrels of the Strategic Petroleum Reserve and coordinate with countries such as India, Japan and South Korea to deal with soaring oil prices as the economy recovers from the pandemic
.

The White House argues that releasing the Strategic Petroleum Reserve lowers the price of gasoline for the peak holiday driving season by about 10 cents a gallon
.
But with fuel and consumer prices rising, the White House remains under pressure to control prices, which could jeopardize Democratic control
in both houses.
Analysts say gasoline prices could reach $
4 a gallon in the conflict between Russia and Ukraine.
And on Wednesday, the average daily price of a gallon of regular unleaded gasoline was $3.
54
, according to the automobile club AAA.

Oil prices continue to fluctuate

Since last week, crude oil prices have been volatile
due to the conflicting geopolitical news of the Russian-Ukrainian situation and the Iranian nuclear talks.
The International Energy Agency (IEA) has said that its member states are ready to take action to ensure adequate supply in the global oil market as Russia-Ukraine tensions increase the risk of supply
disruptions.

Regarding the Iranian nuclear talks, Iran's foreign minister said on Wednesday that he hoped to resolve the remaining issues in the coming days, but that "under any conditions, Iran's red line cannot be crossed.
"
At present, the market expects that the return of Iranian oil to the global market will help ease the supply crunch
.

Regarding the situation in Russia and Ukraine, US President Joe Biden's deputy national security adviser and deputy director of the National Economic Council Daleep

Singh said the U.
S.
is in discussions with oil exporters and importers to try to eliminate the consequences
of the escalation of hostilities and sanctions.
He said discussions included the possibility
of tapping the Strategic Petroleum Reserve on top of the plan announced last year.

Currently, the United States is experiencing the highest inflation rate since the early 80s of the 20th century, and it is growing far faster than wages
.
The conflict between Russia and Ukraine could further hit confidence, especially if gasoline prices continue to rise while soaring mortgage rates make housing more unaffordable
.

Biden had said on Tuesday that the administration was "closely monitoring" energy supplies and was prepared to coordinate with major oil producers to ensure supplies and "push down" natural gas prices
.

As geopolitical tensions intensify, Wall Street investment banks and oil industry executives recently made a concerted effort to predict that oil prices would return above
$100.
On Wednesday, JPMorgan Chase said that assuming the escalation of the situation between Russia and Ukraine and the conclusion of the Iran nuclear deal, the average price of Brent crude oil in the second quarter may reach $
110 per barrel.
Vitol, the world's largest independent oil trader

Group CEO Russell Hardy previously said oil prices could remain above
$100 a barrel "for a long time" over the next 6 to 9 months as global demand hits a new record this year.

Separately, the American Petroleum Institute (API) released crude oil inventory data
on Wednesday.
Data showed that API crude inventories in the United States increased by 5.
98 million barrels in the week ended Feb.
18, and Cushing crude inventories decreased by about 2 million barrels
.