Oil prices drop as Europe agrees to release diesel reserves

Oil prices dropped $2 on Friday as European leaders agreed to release diesel reserves to US President Donald Trump, according to a Reuters report. Brent crude fell 1.76 percent to $100.50 a barrel, while West Texas Intermediate decreased 2.18 percent to $90.85 a barrel. This comes after France proposed releasing additional diesel stockpiles during a G7 videoconference chaired by French President Emmanuel Macron.

European countries have agreed to release 50 million barrels of diesel and 50 million barrels of crude oil to International Energy Agency members. Analysts suggest the main concern in the energy market is now refined product supply, due to reduced refinery capacity and output in the Middle East and Russia, rather than crude availability.

Some experts believe another release of oil stocks could help balance the market, with Barclays raising its fourth-quarter Brent forecast to $115 and its 2026 forecast to $100 a barrel. Meanwhile, Ukraine has reportedly struck oil facilities in Russia's Samara and Volgograd regions.