The crude oil market is wondering why the Strategic Petroleum Reserve numbers remained unchanged even as the Department of Energy announced that it had already sold over 6.0 million barrels of oil to a private concern, and they announced another sale of 10 million more barrels of oil by the end of this month. We know there is mandatory reporting of inventory shifts by the oil companies but is the SPR on the same reporting schedule.
There are some that are laughing off the possibility of a production freeze because of the failure at Doha in April, but one must not just dismiss it. A deal at Doha was closer than anyone imagined and there is a possibility that they can put those pieces back together.
The U.S. Federal Reserve and the Bank of Japan showed the two sides of central bank action this week. The Fed's Federal Open Market Committee ended with no change to the U.S. benchmark interest rate. The lone dissenter was once again Federal Reserve Bank of Kansas City President Esther George.
OPEC was close to an agreement but failed to get it done. Still, the cartel did elect a new OPEC president and laid the groundwork for a potential emergency meeting in the future. The change in tone at this OPEC meeting seems to suggest that in the future OPEC may find a way to work together.