Oil fell on Friday on demand concerns, rising inventories and the likelihood of the Biden administration releasing emergency reserves.
While central banks continue their aggressive interest rate hikes, concerns about demand from China prevail. On Thursday the European Central Bank meanwhile implemented an unprecedented 75 basis point rate hike US Federal Reserve chair Jerome Powell claimed the central bank was determined to curb prices.
US stocks: US crude inventories rose 8.8 million barrels last week on a combination of increased imports and continued releases from government emergency reserves, reported Reuters citing the energy information management.
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price action: West Texas Intermediate futures fell 0.16% to $83.41/barrel.
That United States Brent Oil Fund BNO closed 0.87% higher during the vanguard Energy Index Fund ETF VDE traded over 0.59% higher.
tap reserves: Despite the current downward trend in prices, US officials are considering ways to deal with a potential rise in oil prices later in the year, including developing strategic crude oil reserves.
Officials are warning of a price spike this December when EU sanctions on Russian supplies take effect unless other steps are taken, it has been reported Bloomberg.
