Oil Falls as Recession Fears Outweigh Modest SPR Buyback Plan
- DOE to purchase 3m bbls of crude to start replenishing reserve
- WTI crude futures fell to settle near $74 a barrel on Friday
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Fears of a global economic slowdown pushed oil prices lower, outweighing news that the Biden administration will start buying crude to replenish strategic reserves.
West Texas Intermediate fell 2.4% to settle around $74 a barrel on Friday. Oil fell in tandem with broader markets as apprehension grows the resolve of central banks to fight against inflation will tip economies into recession. Adding more weight to prices, portions of the Keystone pipeline have resumed flows at reduced pressure, supplying Canadian crude to US Midwest refineries.