Oil climbs down from precipice as US crude reserve release ‘on the table’

The Trump administration hasn’t committed to joining allies in tapping oil stockpiles, and so far doesn’t consider oil supply to be a problem.

Gasoline prices are expected to rise following a weeklong climb in oil prices amid the war with Iran. | Frederic J. Brown/AFP via Getty Images

Oil prices retreated from the four-year highs hit overnight, but the grim outlook in the energy markets has put the White House in a tough spot on whether to approve the release of U.S. strategic oil supplies.

News early Monday that the United States and other G7 countries were discussing a possible coordinated release of oil from their strategic petroleum reserves halted a panic-driven market spike that briefly pushed U.S. oil to nearly $120 a barrel overnight. The French governement later in the morning walked that back, saying the G7 was “not there yet” as far as tapping oil stockpiles, according to a report from Bloomberg.

Still, the dramatic run-up in crude prices since the U.S. and Israel started their attacks against Iran just over a week ago continues to threaten the global economy, analysts warn.

© Politico