A coordinated global release of oil reserves led by the United States, resulting in 70–80 million barrels of additional crude supply, fell short of the amount markets were pricing in, and according to Goldman Sachs has turned out to be little more than a symbolic gesture as global oil prices rebounded to a one-week high on Tuesday.
Analysts at Goldman Sachs had expected the effort made in tandem with China, India, Japan, South Korea, and the United Kingdom to result in adding more than 100 million barrels into the market. As such, the bank said in a note titled “a drop in the ocean,” dated Nov. 23 that “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.”
