Biden releases petroleum reserves

News of the day, Thursday, 31 March

The USA President Joe Biden is set to release its strategic petroleum reserve (SPR) over several months to lower surging oil prices. In early March Biden administration announced to release 60 million barrels from SPR, while this time the released volume is 180 million barrels — the largest release in over 50-year history of SPR. Following this statement, Brent crude futures for May fell by 4.8%, and WTI crude futures decreased by 5.6%.

European stocks closed generally lower on Wednesday amid disappointment in Russia-Ukraine ceasefire talks. DAX futures contract in Germany was 0.1% higher, CAC 40 futures in France dropped 0.2% and FTSE 100 futures contract in the UK decreased 0.1%. Since the end of February, European stocks were going through a tough time, with the DAX decreasing by 8% and the broad European Stoxx 600 index sliding nearly 6%, as the tensions over Ukraine made commodity prices soar, increasing inflation fears. Nevertheless, the euro holds firm at a one-month high against the dollar. "The euro has been one of the biggest winners over the past sessions, part of that reflects the positive news about the Russia-Ukraine tensions," said Carol Kong, an FX strategist at CBA.

The price of Brent crude is $107.50, WTI — $103.00, GBP/USD — 1.3136, EUR/USD — 1.1173, and gold costs $1926.50 per ounce.