Some Contained Swings On Headlines Noting The US Is Refilling SPR As Much As Possible

Our commodities team provide some colour re: the two-way swing in crude oil prices in more recent trade.

• The moves came as David Turk, US Department of Energy Deputy Secretary, told BBG that the government had been refilling the special petroleum reserve when asked if now a good time was based on prices.
• Turk noted “we are going to be opportunistic when the prices are at the right level to make it a good deal for taxpayers... We are refilling as much as we can, and we have been doing it for the last several months and at this price level we will keep doing it.”
• On whether the US govt will accelerate purchases as prices fall, Turk said “We will buy as much as we possibly can, but there are some physical constrains given the way the caverns are set up.” Turk said that the US will be buying at least 3mn bbl.
• Prices initially spiked on headlines that the US was looking to refill the SPR but have since receded as the comments implied limits to such rebuying.