“Putin price hike” press conference details – prices at the pump to fall 10-35c

“Putin price hike” press conference details – prices at the pump to fall 10-35c

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Thursday morning, the White House released a statement detailing plans to sell strategic petroleum reserves, and increase fees on oil companies not producing on federal lands. Thursday afternoon, the President provided additional details:

  • The 180mb release appears to come entirely from the US reserve; however, the President expects allies to release an additional 30mb-50mb of oil from their reserves.
  • The President called on Congress to pass legislation designed to incentivize energy companies to drill on public lands, applying a “use it or lose it” strategy.
  • In response to a question, the President indicated that his plan could reduce prices at the pump by 10-35c per gallon.

In afternoon trading, oil prices (USO) continued to selloff, with WTI (CL1:COM) trading down as much as 6.5%. Energy stocks also traded down on the day, with the energy index (XLE) down 0.5% in afternoon trading. Reactions to the plan have been mixed, and commentators are likely to shift focus to upcoming supply announcements from allies.

Originally Posted on: https://seekingalpha.com/news/3819495-putin-price-hike-press-conference-details-prices-at-the-pump-to-fall-10-35c?source=feed_tag_commodities
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