Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🚨 NDVA surged 43% - these 3 AI stocks could be next Start Free Trial
Oil Down, Set for 3% Weekly Drop Over 210-Million-Barrel Emergency Release
Published Apr 08, 2022 12:30AM ET
© Reuters.
By Gina Lee
Investing.com – Oil was down on Friday morning in Asia and was set for a weekly loss of 3% after consuming countries agreed to release a total of 240 million barrels of oil from emergency stocks.
Brent oil futures fell 0.64% to $99.94 by 12:30 AM ET (4:30 AM GMT) and WTI futures were down 0.47% to $95.58.
International Energy Agency executive director Faith Birol tweeted that the organization “is moving ahead with a collective oil stock release of 120 million barrels (including 60 million barrels contributed by the U.S. as part of its overall draw from its Strategic Petroleum Reserve).” More details of specific contributions will be released soon, the tweet added.
The release will amount to about 1 million barrels per day from May to the end of 2022. It could cap price rises in the short term, but would not fully cover volumes lost from Russia due to sanctions for its invasion of Ukraine on Feb. 24, according to some investors.
"Although this is the biggest release since the stockpile was created in 1980, it will fail to ultimately change the fundamentals in the oil market. It is likely to delay further increases in output from key producers," ANZ Research analysts said in a note.
The release could also deter producers, including the Organization of the Petroleum Exporting Countries and U.S. shale producers, from stepping up output increases even with oil prices around $100 a barrel, the note added.
Meanwhile, the European Union (EU)’s consideration of a ban on Russian oil, following its plan to embargo Russian coal, will cap any losses for the black liquid in the short term.
"In the court of public opinion, pressure is mounting on Brussels to act, and if that pressure valve pops and the EU sanctions Russian oil, we could see Brent crude at $120 in a heartbeat," Stephen Innes, managing director of SPI Asset Management, said in his own note.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.