Oil Release a Game-Changer Despite Price Bounce

Summary


NEW YORK (Reuters) - It might not sound like much of a victory. The United States and other oil-consuming countries release emergency stocks of oil to put a lid on prices. The result: crude prices in London rise by $1 since the program began, three months ago.

But many oil experts say the strategic releases - just the third-ever by a group of consumer countries - were a major success. Not only did they likely avert a further rise in oil prices during the peak U.S. driving season, but they set a precedent for consuming countries to keep bullish oil speculators in check.

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Extract


Oil Release a Game-Changer Despite Price Bounce

"The releases completely changed the psychology of the oil market," said Amy Jaffe, an energy policy expert at Rice University's Baker Institute in Houston. "The move worked, as it has in the past, because spec...

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