On Wednesday, President Biden announced that the Energy Department would sell the remaining 15 million barrels out of the U.S. strategic petroleum reserve, aiming to lower gas prices before the mid-term elections. Biden has also stated that the administration would start filling the reserves not before oil prices drop to $70 a barrel.
Recently OPEC has also slashed its oil demand growth estimates for 2022 and 2023. OPEC lowered its estimates by 460,000 barrels per day (bpd) for 2022 and by 360,000 bpd for 2023. The cartel expects demand growth to be impeded by global economic headwinds and uncertainties.
