2020-03-10 | 13:40
[size=18]The US Energy Department said today, Tuesday, that it has delayed the sale of up to 12 million barrels of oil from the Strategic Petroleum Reserve due to a drop in the price of crude.
The ministry had announced the sale of a portion of the oil reserve designated for emergencies in late February, before the outbreak of the Corona virus, and the failure of oil producers to agree on the price of crude oil.
It is worth noting that oil prices rose today by about 8% to recover from the loss recorded on Monday, as it recorded its worst daily performance in nearly 30 years.
This comes at a time when investors are looking for a possible economic stimulus in light of expectations of falling oil prices and a slowdown in new infections recorded by the Corona virus in China.
By 06:05 GMT, Brent crude contracts rose 8.3% to $ 37.21 a barrel, while US West Texas Intermediate crude contracts gained 7.9% to $ 33.59 a barrel.
The benchmarks fell 25% yesterday, Monday, to their lowest levels since February 2016 and recorded the largest percentage decline in one day since January 17, 1991, when oil prices fell sharply at the outbreak of the second Gulf War.
The current decline came after Saudi Arabia and Russia failed on Friday to reach an agreement to cut oil production to support oil markets.