THE United States yesterday accused “state actors” of trying to manipulate global oil markets, saying their actions contributed to a big drop in oil prices and adding that American energy suppliers were well placed to withstand the volatility.
“These attempts by state actors to manipulate and shock oil markets reinforce the importance of the role of the United States as a reliable energy supplier to partners and allies around the world,” US Energy Department spokeswoman Shaylyn Hynes said in a statement.
The department did not name any country, but said it was watching the fallout from last week’s OPEC+ meeting. It also said the administration was monitoring the effects of the coronavirus, which has the potential to hit oil markets harder than the overall economy due to the impact on fuel demand for transportation.
Saudi Arabia, the top producer in the Organisation of the Petroleum Exporting Countries, and Russia both said over the weekend that they would raise production after a three-year pact between them and other major oil producers to limit supply fell apart on Friday.
US crude fell nearly 25% to settle at US$31.13 a barrel yesterday, after earlier dropping 33% to $27.34, the lowest since Feb 12, 2016.
As the price plummeted, Energ Syecretary Dan Brouillette directed his department to determine whether a scheduled sale of 12 million barrels of oil from the US Strategic Petroleum should take place this month, the DOE said.
The department had announced the sale on Feb 28 in compliance with a 2015 law that ordered occasional sales to help pay for government programmes. – March 10, 2020, Reuters
