In this special programme for BBC Arabic, Dr Carole Nakhle, CEO of Crystol Energy, explains the purpose of the Strategic Petroleum Reserves (SPR) and the impact of their release by the US and the International Energy Agency (IEA) on oil markets.
Dr Nakhle argues that the main function of the SPR is to act as a safety cushion in periods of crisis to counter supply disruptions. Today, consumers fear disruptions to Russia’s oil supplies and subsequent higher oil prices. In this context, the release of the largest SPR volumes in history is used to counterbalance potential disruptions from the world’s second largest oil exporter.
Meanwhile, OPEC has stuck to its production plan arguing that current market fundamentals do not justify further increases in production. The release of the SPR will lend further support to its decision.
Watch the programme:
“Energy Markets and the Design of Sanctions on Russia“, Christof Rühl, Mar 2022
“No endgame for Ukraine“, Christof Rühl, Feb 2022
“OPEC+ sticks to its plan“, Dr Carole Nakhle, Apr 2022
“Putin demands gas exports to be paid in rubles, and US SPR release“, Dr Carole Nakhle, Apr 2022
“Energy Market Dynamics“, Dr Carole Nakhle, Mar 2022
“The EU’s 4th round of sanctions on Russia“, Dr Carole Nakhle, Mar 2022
“Can Europe completely cut its reliance on Russian energy supplies?“, Dr Carole Nakhle, Mar 2022