Oil rises as investors weigh supply threats
Oil prices declined on Wednesday as the International Energy Agency (IEA) announced plans to expedite the release of strategic oil stocks, particularly diesel, to address record-high fuel prices amid the Iran conflict. Brent crude futures fell 38 cents, or 0.38%, to $100.20 a barrel, while US West Texas Intermediate (WTI) crude futures dropped $1.16, or 1.3%, to $88.28.
The IEA stated that timely releases could inject around 100 million barrels into the market, though analysts and some governments questioned whether this represented a significant new intervention. France announced it would release 10 million barrels of diesel, according to unnamed sources. Europe is experiencing the most acute supply crunch, and these releases aim to alleviate pressure on WTI prices, potentially easing some of the US supply constraints.
US crude inventories and distillate stocks declined last week, while gasoline stocks rose, according to the Energy Information Administration. However, investors remain skeptical about the sustainability of recent Middle East supply increases, with PVM analyst Tamas Varga noting that storm threats and ongoing conflicts in the Middle East and Ukraine also weigh on prices.
Written by urgent.news from CNA - Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
