U.S. Strategic Oil Reserves Shrink as Shale Offers Supply Buffer
- Drawdowns continues as White House pledges to sell more
- Rising domestic output to offset need for a flush SPR
UBS' Gordon Sees Oil Trading in $40 to $60 Range
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U.S. strategic crude stockpiles have dropped to the lowest level in more than 12 years as the shale boom reduces the nation’s need for an emergency buffer against shortages.
Inventories declined by about 13 million barrels over 17 consecutive weeks as the Energy Department delivered supplies it sold in recent months. That brought stocks down to 682 million as of June 30. In two sales held in January and February, the agency sold almost 17 million barrels of crude from its salt caverns in Texas and Louisiana to companies including Chinese state-owned PetroChina Co. Ltd.