Oil up over supply uncertainties as US to delay refilling emergency stocks

ANKARA

Oil prices increased slightly on Friday in a volatile trading session over supply uncertainties after the US said refilling its Strategic Petroleum Reserve (SPR) may take several years.

International benchmark Brent crude traded at $75.93 per barrel at 0657GMT, a 0.02% increase from the closing price of $75.91 a barrel in the previous trading session.

At the same time, American benchmark West Texas Intermediate (WTI) traded at $70.02 per barrel, a 0.08% rise after the previous session closed at $69.96 a barrel.

Price fluctuations were triggered by supply uncertainties as Energy Secretary Jennifer Granholm said the US’ Strategic Petroleum Reserve (SPR) will not be filled in short time contrary to an earlier statement to purchase oil for SPR when prices fall under $70 a barrel.

"This year, it will be difficult for us to take advantage of this low price," Granholm told US lawmakers.

"But we will continue to look for that low price into the future because we intend to be able to save the taxpayer dollars," she said.

Granholm’s statement came despite US President Joe Biden’s pledge in October to stop purchasing oil to refill the SPR as long as prices fall below $70 per barrel, raising fears of an oversupply in the market.

Meanwhile, adding more to these fears, Russian Deputy Prime Minister Alexander Novak said earlier this week that Moscow will continue production cut of 500,000 barrels per day of oil until the end of June, falling short of the market expectations for further cuts.