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Brent and U.S. crude benchmarks each settled down about 13% in their biggest weekly falls in two years after President Biden announced a release from the U.S. Strategic Petroleum Reserve. Brent futures were down 32 cents at $104.39 a barrel in early trade.
A large government stock release adds near-term supply to a tight market, which pressures crude and fuel prices lower. The size of the weekly drop shows how strongly the market reacted to the policy move.
reuters.comLaura SanicolaApr 1, 2022After 215 past bearish policy events, WTI moved a median +0.1% over 5 sessions (51% higher; middle half -4.4% to +3.3%), and +0.2% over 20.
After 210 past bearish policy events, BRENT moved a median -0.9% over 5 sessions (48% higher; middle half -3.8% to +3.2%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Brent's roughly 13% weekly fall, the largest in two years, is attributed directly to the US SPR release announcement, which adds emergency supply.
