Background on Strategic Petroleum Reserves
G7 countries collectively hold around 1.1 billion barrels of strategic oil reserves, with the U.S. accounting for roughly 450 million barrels alone.
Japan has the largest buffer, covering about 109 days of imports, while most other G7 nations maintain reserves below the 90-day level.
In 2022, following the Russia-Ukraine war, the U.S. released about 180 million barrels over six months to stabilize markets.
Before the Iran conflict, nearly 20 million barrels per day (mb/d) of oil passed through the Strait of Hormuz, but flows are now close to zero.
Implication
Even if the G7 releases around 360 million barrels over the next six months (half from the U.S. and half from other G7 members), it would add only about 2 mb/d to supply, which is far below the 18–20 mb/d shortfall.
Conclusion
A coordinated G7 reserve release could slow the rise in crude prices, but it is unlikely to fully offset the supply disruption
G7 countries collectively hold around 1.1 billion barrels of strategic oil reserves, with the U.S. accounting for roughly 450 million barrels alone.
Japan has the largest buffer, covering about 109 days of imports, while most other G7 nations maintain reserves below the 90-day level.
In 2022, following the Russia-Ukraine war, the U.S. released about 180 million barrels over six months to stabilize markets.
Before the Iran conflict, nearly 20 million barrels per day (mb/d) of oil passed through the Strait of Hormuz, but flows are now close to zero.
Implication
Even if the G7 releases around 360 million barrels over the next six months (half from the U.S. and half from other G7 members), it would add only about 2 mb/d to supply, which is far below the 18–20 mb/d shortfall.
Conclusion
A coordinated G7 reserve release could slow the rise in crude prices, but it is unlikely to fully offset the supply disruption
Oil markets are now moving more on geopolitics than supply-demand Iran’s threats and attacks near the Strait of Hormuz a route for nearly 20% of global oil supply have pushed Brent crude to around $119.50 its highest since 2022.
In the current Middle East crisis prices are reacting as much to political rhetoric as to actual supply risks, making oil increasingly driven by credibility of threats not just fundamentals
In the current Middle East crisis prices are reacting as much to political rhetoric as to actual supply risks, making oil increasingly driven by credibility of threats not just fundamentals
# Gold hits monthly lows near $4970, then rebounds above $5000 in Monday’s Asian trading
# The US Dollar stalls its uptrend as markets turn cautiously optimistic on Strait of Hormuz reopening hopes.
# Technically, Gold closed the week below 21-day support-turned-resistance; RSI turns bearish.
# The US Dollar stalls its uptrend as markets turn cautiously optimistic on Strait of Hormuz reopening hopes.
# Technically, Gold closed the week below 21-day support-turned-resistance; RSI turns bearish.
Gold steadied in Asian trade, holding above key levels as markets focused on oil prices, the U.S.–Israel conflict with Iran, and upcoming central bank meetings.
Prices briefly fell below $5,000 but rebounded as easing oil prices reduced inflation concerns linked to the conflict.
The primary trend remains bullish; on the 4H chart, prices are moving within a range of 5150–4960.
Prices failed to break lower support and are now sustaining above the pivot of 5003, showing short-term recovery.
A morning star pattern is forming on the daily chart; a bullish close could support upside in the next few sessions.
For stronger bullish confirmation, the 12 EMA must cross above the 52 EMA; otherwise, the rise may remain a corrective move toward 5120.
R1=5180 R2=5400 S1=4960 S2=4880
Prices briefly fell below $5,000 but rebounded as easing oil prices reduced inflation concerns linked to the conflict.
The primary trend remains bullish; on the 4H chart, prices are moving within a range of 5150–4960.
Prices failed to break lower support and are now sustaining above the pivot of 5003, showing short-term recovery.
A morning star pattern is forming on the daily chart; a bullish close could support upside in the next few sessions.
For stronger bullish confirmation, the 12 EMA must cross above the 52 EMA; otherwise, the rise may remain a corrective move toward 5120.
R1=5180 R2=5400 S1=4960 S2=4880
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What you need to know on Wednesday, March 18:
# The US Dollar lost its firmness and is now on a two-day losing spree.
# It remained under pressure after comments from US President Donald Trump, informed that US NATO allies don’t want to get involved in the US military operation in Iran.
# The US Dollar lost its firmness and is now on a two-day losing spree.
# It remained under pressure after comments from US President Donald Trump, informed that US NATO allies don’t want to get involved in the US military operation in Iran.
Cryptonians
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