Early this month crude Oil took a dive and broke below the support zone above $70, tumbling down to $64.30 on Monday, as the banking crisis spread in
Early this month crude Oil took a dive and broke below the support zone above $70, tumbling down to $64.30 on Monday, as the banking crisis spread in Europe, with the Swiss Credit bank failing and being taken over by one of its rivals such as the UBS bank.
So, that’s one of the reasons crude Oil returned back down below $70 by the end of the week. Another reason is the fact that the US government backed away from its intention to immediately refill the Strategic Petroleum Reserve. Comments from Energy Secretary Jennifer Granholm on Thursday that it will be “difficult” to refill government Oil reserves this year sent crude Oil lower.
Last year, the government depleted oil reserves to reduce spiking world energy prices, and the Biden administration had previously indicated that it would restock inventories if prices traded around $67 to $72 a barrel. However, the current low inventory levels, which are the lowest since 1983, make it challenging to refill the reserves this year.
WTI
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