Oil rises as investors mull supply threats

Oil prices dipped on Wednesday, as investors considered potential supply disruptions following the International Energy Agency's (IEA) announcement to accelerate oil stock releases and prioritize diesel. Brent crude futures fell 38 cents, or 0.38%, to $100.20 a barrel, while US West Texas Intermediate (WTI) crude futures slipped $1.16, or 1.3%, to $88.28.

The IEA claimed that implementing previously announced releases could inject around 100 million barrels into the market. France intends to release 10 million barrels of diesel from its strategic reserves, according to unnamed sources. Europe is bearing the brunt of the supply crunch, and these releases aim to alleviate some pressure on US supplies, according to John Kilduff, partner at Again Capital.

US crude stocks and distillate inventories declined last week, while gasoline stocks rose, according to the Energy Information Administration. However, investors remain doubtful about the sustainability of recent Middle East supply increases, with Tamas Varga, an analyst at PVM, noting that the approaching US storm and ongoing conflicts in the Middle East and Ukraine also support prices.