(New York) Oil prices ended a streak of three consecutive positive sessions on Thursday, undermined by statements by the US Secretary of Energy, who postponed until next year, at least, the purchases of crude oil to replenish US strategic reserves.

The price of a barrel of Brent North Sea oil for May delivery fell 1.01% to close at $75.91.

The US West Texas Intermediate (WTI), also due in May, fell 1.32% to $69.96.

Prices had started the session in the green, still supported by the technical momentum generated since Monday.

But the market turned around “because Secretary of Energy (Jennifer) Granholm indicated that SPR (strategic reserve) purchases were unlikely to be made this year,” said Phil Flynn, Price Futures Group.

Between September 2021 and January 2023, the US government withdrew some 250 million barrels from strategic reserves (SPR), or 40% of the total, in an attempt to relieve oil prices.

SPRs are currently at their lowest level since December 1983.

After officially interrupting its program to draw down strategic reserves, in December, the government of President Joe Biden pledged to replenish them.

A first call for tenders was launched, but it did not succeed.

“It’s going to be difficult to take advantage of the (current) low prices this year” and buy oil back into the market, Jennifer Granholm said Thursday during a hearing before the House Budget Committee.

The Minister explained that the difficulties were notably linked to maintenance work affecting two of the four strategic reserve storage sites.

SPRs are stored in huge salt caverns in Texas and Louisiana.

Another problem, the US Department of Energy is required by an old law passed in Congress in 2015 to put on sale an additional 26 million barrels from strategic reserves between April and June.

These statements “prompted some to take profits because operators thought the government was going to start buying oil if prices fell below $70”, which is the case currently, observed Phil Flynn.

President Joe Biden had pledged in October that the United States would acquire crude on the market if prices fell into a range between $67 and $72.

Despite the postponement, Ms Granholm said the government still plans to replenish the strategic reserves. But “it will take a few years, because filling takes longer than pumping,” she said.