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00:00So we we are studying these news. What do we make of it? And does it do enough to actually counter what Opie? Plus, did you know there are a lot of different factors in this market. But it almost seems like whatever Biden does of it. So if it's a 15 million or release he's talking about potentially to win another release on top of this in January. Yes, it will provide maybe some short term relief for the market. You might see. Well, we did a short downturn in oil prices, but they're back up again because 15 million barrels is nothing. When you're talking about OPEC removing, you know, to over 2 million barrels a day in their in their latest cut. So that's one thing to remember. But another thing is it doesn't really almost matter what OPEC and Biden do. These are these are small numbers compared to what a potential recession could do for demand for oil and gasoline. And I think that's still what the market is focusing on. I think when you see action by the Fed, when you look at interest rates rising and you look at the possibility of a slowdown in the economy, that's going to have a wider seismic impact on prices. And so when when you do see these short term moves based on what OPEC plus says or based on when Biden says, that will surely swing the market. But when you look further out, I really think traders are focused on what's the economy going to be doing in the winter and what's the Fed going to be doing to react to this surging inflation? This could only have a limited effect for a limited time, surely, Stephen. And you know, if OPEC keeps at it, all bets are off. Yeah, absolutely. I mean, there is the risk that OPEC heightens their effort to stabilize the market. You know, they do also see the recession potentially has already started. And that's going to have an impact on oil demand. And that's why they've already announced that their recent cuts, they could do more to try to stabilize this market. They do could do more to cut more oil out of the market. There's another risk that, you know, Europe sanctions on on Russian fuel imports could also potentially mean that Russia will just totally cut off. If there's a price cap on imports of Russian oil products in Europe, Russia might just cut off all exports. And that's another source of supply that could be cut out of the market. And you could see prices rise again. There are a lot of factors, whether it's OPEC plus the Biden administration or the Fed, that could swing prices over the next few weeks. And it really is a question of who has more power in these talks. Stephen, real quickly, about 30 seconds. We see the energy hoarding all around the world here right now. Does that at least alleviate some of the fears of a winter shortfall? Yeah. You know, when we're talking about natural gas shortages in Europe, you have Europe at 92 percent full for their inventories. That's a really good number to be at. But you have to remember, if it's a cold winter, they can burn through those inventories and about two months won't get them through the entire winter. So it's not just hoarding supply. They also have to reduce demand by 15 percent at least this winter to help them get through and not have to face shortages or rationing.

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Oil Drops Amid Biden’s Emergency Crude Plan

President Joe Biden announced plans to tap into additional supplies of strategic reserves, saying they’re going to be stepping in and buying when WTI is priced around the $67 to $72 a barrel mark. Stephen Stapczynski reports on Bloomberg Television. (Source: Bloomberg)

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