Oil Market Update: Mixed Inventories, Middle East Tensions Ease, Uncertainty from Russia strengthened by Biden Administration Emergency Reserve Increase.

Recent developments in the oil market include a mixed report on US inventories, with overall crude stocks decreasing by 1.36 million barrels last week despite an expansion at the Cushing storage hub. This report follows a 0.8% increase in WTI prices in the previous session, with Brent trading near $84. Tensions in the Middle East have eased since early last month, causing prices to decline. Market analysts suggest a weaker global market due to softening timespreads, poorer refining margins, and options skews favoring put options. Additionally, Russia’s continued pumping of oil above agreed-upon targets before the OPEC+ meeting next month adds uncertainty to the market. In other news, the Biden administration has raised the limit it is willing to pay for emergency oil reserve replenishment to $79.99 a barrel, the first time an explicit cap has been set. This decision comes as Americans continue to accrue “phantom debt” that financial institutions cannot track, Microsoft announces further studio closures, Stormy Daniels returns to court, and a Trump judge postpones documents trial indefinitely. Separate reports suggest new developments in the areas of power companies, nuclear revitalization, Tesla’s supercharging network, and succession planning for Apple’s CEO Tim Cook.