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Exchange Chiefs Reject Prospective U.S. Oil-Futures Intervention as Prices Spike

The pushback follows a 172 million-barrel SPR release after reports of possible Treasury action in futures.

Model of Oil barrels are seen in front of rising stock graph in this illustration, July 24, 2022. REUTERS/Dado Ruvic/Illustration

Overview

  • CME Group CEO Terry Duffy and TMX Group CEO John McKenzie publicly opposed potential U.S. moves in oil futures at a Boca Raton industry gathering, warning of market distortion.
  • A separate exchange chief cautioned that direct intervention could leave the government exposed to hefty losses if energy prices continue to rise.
  • Reports indicate the Treasury is weighing futures-related measures to curb prices, and the White House and Treasury did not offer public comment.
  • Speculation over large, unexplained trades persisted, while the Department of Energy said it has not traded oil derivatives or advised other agencies to do so.
  • Washington announced a 172 million-barrel Strategic Petroleum Reserve release as the IEA called for a 400 million-barrel coordinated draw, with fresh Strait of Hormuz attacks lifting prices nearly 5% Wednesday and more than 25% since the war began.