Oil falls after report says Trump is considering tapping the emergency oil reserve

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Oil prices bounced around Friday afternoon following reports that the Trump administration could tap an emergency oil reserve ahead of the midterm election.

West Texas Intermediate fell 0.5% to $70 a barrel at 3:25 p.m. ET. Crude, the international benchmark, rose 0.75% to $75.09. 

The Trump administration is “actively considering” a release from the Strategic Petroleum Reserve, the world’s largest oil stockpile, sources told Bloomberg. Options under review range from a 5-million-barrel test sale to a larger release of 30 million barrels.

The White House did not respond to an email earlier this week requesting comment on whether the administration is considering a release.

The potential release could come ahead of the midterm election in November, where rising prices at the pump could hurt Republicans in competitive races. A release could at least temporarily ease global-supply concerns that have driven energy prices to four-year highs. 

The SPR is mainly intended to be an emergency stockpile the US can turn to during war or natural disaster. But non-emergency releases can be authorized to respond to minor supply disruptions or to raise federal revenue, according to the Energy Department. 

WTI is up 52% year-over-year. 

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Read the full article from it’s original source: http://uk.businessinsider.com/oil-price-trump-considering-tapping-emergency-oil-reserve-report-2018-7