Goldman Sachs Says Global Oil Reserves Release 'a Drop in the Ocean'

Global oil prices climbed to a one-week high after the move to release oil from strategic petroleum reserves to cool the market fell short of some expectations.

Reuters

A coordinated release from government oil reserves led by the United States may add about 70 million to 80 million barrels of crude supply, smaller than the more-than-100 million barrels the market has been pricing in, analysts at Goldman Sachs said.

"On our pricing model, such a release would be worth less than $2/bbl, significantly less than the $8/bbl sell-off that occurred since late October," the bank said in a note titled "A drop in the ocean", dated Nov. 23.

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