Citigroup Sees Increasing Chance of SPR Release

Citigroup analysts said they think there is a 50 percent chance the U.S will release stockpiles from the strategic petroleum reserve. For the past several weeks rumors of a potential release have been circulating. The Group of Seven nations said on Aug. 27 it is prepared to call upon the International Energy Agency to "ensure that the market is fully timely supplied." However, there have been doubts on and off Wall Street whether or not an SPR release would be justified at this time.

"The unusual statement from G7 ministers makes it clear to us that the probability of a release is approaching 50 percent," Seth Kleinman, head of energy strategy at Citi, said in the report. "Prices are already at levels that have proved problematic for the global economy, and the list of supply disruptions is long enough to justify a release."

Brent currently trades at just under $115 per barrel, and WTI trades just under $97 per barrel.

A report today from OPEC today said the group produced 31.41 million barrels of oil a day in August — 254,000 more a day than in July.

United States Oil ETF (NYSE: USO) and iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) are higher by 0.50 percent.

United States Brent Oil (NYSE: BNO) is up 0.10 percent.

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