Russia’s invasion of Ukraine has caused significant stress on a variety of fronts and our hearts go out to the Ukrainian people. The crisis conditions extend to global oil prices with sanctions on Russian oil exports by the U.S. and other nations contributing substantially to an extremely volatile oil market.
On March 31, the U.S. announced it will release 180 million barrels of oil from its strategic reserves to add to the global supply in hopes of reducing oil prices. The price of crude oil (WTI) ended 2021 at $72 per barrel; subsequent to the Russian incursion into Ukraine, prices rose to over $123; they are currently trading below $105.
There are many ways to look at the supply and demand for oil. We offer the following statistics as one perspective on what is happening in the global markets:
- Global daily consumption: 97MM barrels
- US daily consumption: 20MM barrels
- Global daily production: 77MM barrels
- US daily production: 10MM barrels
- Russian daily production: 10MM barrels
- U.S. daily reliance on Russia: 2-5MM barrels
- Recent release from reserves: 180MM barrels
- U.S. reserves: 44 billion barrels
Sources: https://www.worldometers.info › oil ; https://worldpopulationreview.com › country-rankings ; https://www.eia.gov/outlooks/steo/report/global_oil.php
IMPORTANT DISCLOSURES
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