Will White House Tap Oil Reserves?

Oil prices slipped to a one-week low on Monday on expectations on supply boost and weaker demand under pressures from recent surge in energy costs, the strong dollar and increasing COVID-19 cases.

On Sunday, Senate Majority Leader Chuck Schumer urged Biden’s administration to tap into Emergency Petroleum Reserves (SPR) to lower surging fuel prices as Americans prepare to go into the holiday season. Traders continue to assess the possibility of such a decision.

During the New York session, the WTI crude oil benchmark slid and extended its four-day dip, falling 1.07%, trading at $78.89.

Energy Secretary Jennifer Gharnholm told CNN that Biden is evaluating the available tools, including a release from the SPR.

Market participants said that a release from the US SPR would help in the near term, but it would not entirely solve the problem.