Oil slips as IEA releases details of SPR release
Oil prices edged lower again on Wednesday as the IEA confirmed the details of the coordinated reserve release that was aimed to stabilize crude markets. The 120 million barrel release included 60 million from the US which was part of the 180 million it announced last week. In other words, non-US countries committed to 60 million barrels, taking the total release including the US to 240 million barrels.
Whether that would be enough would depend on how much Russian oil was effectively shut in as a result of export challenges since the imposition of sanctions. Many European countries were continuing to push for a total embargo of Russian energy, including gas, but continued to face resistance from Germany and a few others.
While that remained an upside risk for prices, the bloc was still far away from firm action as it hadn’t even been able to approve a coal ban which should theoretically have been more straightforward. Wednesday's decline was aided by reports that the CPC pipeline would increase shipments once the maintenance was completed in mid-April which would offer further mild relief.
Gold steady amid broader market volatility
Gold remained in consolidation ahead of the Fed minutes, with the moves in yields not yet spooking traders against the backdrop of immense uncertainty and high inflation, both of which favored the yellow metal.
It was trading in an ever-tightening range over the last week and I’m not sure what it would take to break it out of that pattern. While volatility picked up elsewhere, gold remained very steady.