Following the drop in US gasoline stocks, the price of crude oil fell in the early trading hours of today.
Brent crude dropped by 0.6% to $81.93 and the US West Texas Intermediate (WTI) fell by 0.7% to $80.19 per barrel, extending the firm’s loss from Tuesday’s.
US President, Joe Biden has been considering releasing oil from the Strategic Petroleum Reserve (SPR) to cool gasoline price which recently hit a record high.
Analysts have expressed that SPR oil would only provide temporary relief. They expressed further that what is needed is increased supply from U.S. shale producers or the Organization of the Petroleum Exporting Countries (OPEC).
Industry observers have expressed a conviction that supplies would rise and as this happens, demands are expected to decline.
