# Oil prices dip on U.S. crude reserve release, inflation pressure Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-02-14 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil prices slip as U.S. taps Strategic Petroleum Reserve Meta Description: Stay updated on oil prices as the U.S. taps into its Strategic Petroleum Reserve, impacting markets. Watch for U.S. inflation data for further insights. URL: https://financedigest.com/oil-prices-dip-on-u-s-crude-reserve-release-inflation-pressurehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-02-14t015114z2lynxmpej1d01yrtroptp4global-oil-kemp-1736814446448-compressed.jpg) By Shadia Nasralla LONDON (Reuters) -Oil prices dipped on Tuesday after the U.S. government said it would release more crude from its Strategic Petroleum Reserve, while traders look out for U.S. [inflation data](https://www.financedigest.com/oil-jumps-on-lower-than-expected-us-inflation-data.html "Oil jumps on lower-than-expected US inflation data") for further queues. Brent crude futures fell 80 cents, or 0.9%, to $85.81 per barrel by 1003 GMT, while U.S. crude futures fell $1.05, or 1.3%, to $79.09 per barrel. Both benchmarks are on track for their [biggest daily percentage drop since](https://www.financedigest.com/uk-firms-plan-biggest-pay-rises-since-2012-to-fill-staff-gaps.html "UK firms plan biggest pay rises since 2012 to fill staff gaps") Feb. 3. The U.S. Department of Energy (DOE) said it would [sell 26 million](https://www.financedigest.com/britains-superdry-sells-asia-pacific-ip-for-50-million.html "Britain’s Superdry sells Asia Pacific IP for million") barrels of oil from the SPR, which is already at its lowest level since 1983. The DOE had considered cancelling the fiscal [year 2023 sale](https://www.financedigest.com/spains-november-retail-sales-fall-0-6-on-year.html "Spain’s November retail sales fall 0.6% on year") after U.S. President Joe Biden’s administration last year sold a [record 180 million](https://www.financedigest.com/ireland-fines-instagram-a-record-400-million-over-childrens-data.html "Ireland fines Instagram a record 0 million over children’s data") barrels from the reserve. But that would have required Congress to act to change the mandate. [Supply concerns also eased](https://www.financedigest.com/uks-j-d-wetherspoon-returns-to-profit-as-supply-issues-ease.html "UK’s J D Wetherspoon returns to profit as supply issues ease") after the Energy Information Administration said it expected record March production from the seven biggest U.S. shale basins. Elsewhere, [crude exports resumed at a key Turkish port after a devastating earthquake](https://www.financedigest.com/oil-falls-as-earthquake-impact-on-crude-eases-rate-hike-fears-rise.html "Oil falls as earthquake impact on crude eases, rate hike fears rise") rocked the region. Monthly reports from the Organization of the Petroleum Exporting Countries (OPEC) are [expected later on Tuesday and from the International Energy](https://www.financedigest.com/ecb-survey-shows-rising-inflation-expectations-despite-energy-price-falls.html "ECB survey shows rising inflation expectations despite energy price falls") Agency (IEA) on Wednesday. Traders will also be looking for clues from Tuesday’s crucial U.S. [consumer price](https://www.financedigest.com/france-leans-on-retailers-to-help-consumers-cope-with-food-prices.html "France leans on retailers to help consumers cope with food prices") index (CPI) data for January. U.S. [monthly consumer prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") rose in the previous two months. A [Reuters poll](https://www.financedigest.com/germany-home-prices-to-sink-nearly-6-this-year-reuters-poll.html "Germany home prices to sink nearly 6% this year – Reuters Poll") showed a majority of economists expect the U.S. Federal Reserve to [raise interest rates](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked") at least twice more in coming months. Higher [inflation and ensuing rate hikes may weigh on risk assets such as oil](https://www.financedigest.com/oil-rises-about-2-with-u-s-and-china-inflation-in-focus.html "Oil rises about 2% with U.S. and China inflation in focus"). The upcoming data tsunami will greatly influence the immediate [risk appetite](https://www.financedigest.com/u-s-dollar-advances-vs-major-currencies-as-risk-appetite-fades.html "U.S. dollar advances vs major currencies as risk appetite fades"), but the broader view has not changed: inflation will ultimately be defeated,” said PVM analyst Tamas Varga. The [second half of the year](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row") should bring with it tight oil balance greatly aided by reviving Chinese growth. (Additional reporting by Laura Sanicola; editing by Jamie Freed and Jason Neely) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---