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Oil mixed as Washington declares another SPR sale

Another sale of strategic oil reserves announced by the WE seemed to have a calming effect on traders despite previous SPR sales doing nothing to tame pump prices, and Tuesday West Texas Intermediate fell to its lowest level in almost a week.

After the Department of Energy announced an offer to sell until 40.1 million barrels of crude under the phased release strategy 1 million barrels of oil per day for six months, WTI fell 52 cents settle at $109.77 per barrel.

Rose Brent 14 cents for $113.56 per barrel.

Alex Kuptsikevichsenior market analyst at FxProsaid: “Oil movements have become more subdued [and] it will take a significant bullish mover for quotes to manage to consolidate above this zone this time.

Also on Tuesday, as many in the analytic community maintained hope that the Organization of Petroleum Exporting Countries (OPEC) could bring relief to severely constrained global supply, Prince Faisal ben FarhanMinister of Foreign Affairs of Saudi Arabiasaid there was nothing more the kingdom could do to tame oil markets.

He noticed, “There is enough energy on the market; we need to be sure that as we transition to a renewable future, there is enough energy in the market…the kingdom has done what it can.

Faisal added: “Our assessment is that in fact the oil supply is currently relatively balanced”; earlier this month, Saudi Arabia’s energy minister blamed the refining crisis for soaring fuel prices.

Still, the consensus is that supplies are tight and demand remains huge: U.S. crude oil and gasoline inventories likely fell last week, according to to an extensive Reuters poll released ahead of government data due on Wednesday; Additionally, travel during the upcoming Memorial Day weekend in the United States is expected to be the busiest in two years.

Social justice when it comes to the oil market also seemed under threat on Tuesday as Bloomberg reported this agreement on European UnionThe proposed Russian oil embargo “seems unlikely to move forward at next week’s leaders’ summit in Brussels‘ and ‘ doesn’t seem to be in the cards until next month, as we’re told. BudapestThe position seems to harden.

This directly contracted GermanyThe Minister of Economy, who said on Monday that the embargo should be accepted “within a few days”.