Demand for gold surged to an 11-year high last year. This is due to large-scale purchases on the back of high activity by retail investors and a slowdown of ETF outflows.
Wood Mackenzie analysts think the U.S. has enough petroleum in strategic reserve
The U.S. strategic petroleum reserve (SPR) decreased by more than 40% in two years. The reserves were 371.57 million barrels on January 20, compared to 638.08 million barrels a year ago.
Has the SPR reached a dangerously low level? Analysts at Wood Mackenzie believe it hasn’t. They state that SPR values are both operationally and strategically safe.
If reserves are below 122 million barrels, the drawdown capacity significantly decreases. According to experts, more than 4 million barrels per day might be sold for 60 days in case of emergency, with current reserves of 371 million barrels.
WoodMac analysts emphasize the growth of the country's commercial crude oil inventories. Also, they admit that these reserves, with the increasing production in the U.S., might provide support if necessary to meet the demand in the global market.
Experts say that this provides stable consumption with the current amount of SPR, considering the growing internal production, which has already reached 13 million bpd today.
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