UPDATE: WTI Higher as IEA Balks at Plans for SPR Release
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(Updated - August 17, 2012 12:58 PM EDT)
Oil futures are moving higher on Friday following comments by the head of the IEA, Maria Van der Hoeven. Van der Hoeven said she didn't believe the U.S. or European countries needed to release oil from their strategic petroleum reserves to combat the rise in oil prices, and that market conditions don't justify a release.
Her comments come following reports yesterday that suggested that the U.S. was considering a SPR release as an option to help drive down prices, which have risen due to increased tensions in the Middle East.
Several reports this week said that Israel is considering a strike on Iran's nuclear facilities prior to presidential elections in the U.S. Markets reacted by tracking higher, although they are still significantly below February highs. The sub-$100 price in WTI could be what the IEA meant by 'market conditions don't justify a release.'
Van der Hoeven said the IEA had not been in contact with the Obama administration over a potential release of emergency reserves.
This afternoon White House spokesman Josh Earnest told reporter, “As we’ve said for some time,” a release from the SPR “is an option that is on the table.”
WTI futures trade at $95.75 per barrel. Brent is trading lower at $113.75. United States Oil ETF (NYSE: USO) is higher by 0.60 percent.
Oil futures are moving higher on Friday following comments by the head of the IEA, Maria Van der Hoeven. Van der Hoeven said she didn't believe the U.S. or European countries needed to release oil from their strategic petroleum reserves to combat the rise in oil prices, and that market conditions don't justify a release.
Her comments come following reports yesterday that suggested that the U.S. was considering a SPR release as an option to help drive down prices, which have risen due to increased tensions in the Middle East.
Several reports this week said that Israel is considering a strike on Iran's nuclear facilities prior to presidential elections in the U.S. Markets reacted by tracking higher, although they are still significantly below February highs. The sub-$100 price in WTI could be what the IEA meant by 'market conditions don't justify a release.'
Van der Hoeven said the IEA had not been in contact with the Obama administration over a potential release of emergency reserves.
This afternoon White House spokesman Josh Earnest told reporter, “As we’ve said for some time,” a release from the SPR “is an option that is on the table.”
WTI futures trade at $95.75 per barrel. Brent is trading lower at $113.75. United States Oil ETF (NYSE: USO) is higher by 0.60 percent.
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