Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Oil prices fall after truce in Middle East conflict, SPR news

Published 04/03/2022, 02:06 PM
Updated 04/03/2022, 06:47 PM
© Reuters. FILE PHOTO: A worker checks a tank at Nahr Bin Umar oil field, north of Basra, Iraq March 22, 2022. REUTERS/Essam Al-Sudani
LCO
-
CL
-
NG
-
GAZP
-

By Stephanie Kelly

NEW YORK (Reuters) -Oil prices fell at the start of Asian trade on Sunday, after the United Arab Emirates and the Iran-aligned Houthi group welcomed a truce that would halt military operations on the Saudi-Yemeni border, alleviating some concerns about potential supply issues.

The early losses this week come after oil prices settled down around 13% last week - their biggest weekly falls in two years - when U.S. President Joe Biden announced the largest-ever U.S. oil reserves release.

Brent crude futures fell $1.01, or 1%, to $103.38 a barrel by 2223 GMT. WTI crude futures fell 84 cents, or 0.9%, to $98.43 a barrel.

The United Arab Emirates (UAE) has welcomed the announcement of a U.N.-brokered truce in Yemen, the UAE's state news agency WAM reported on Saturday. The Iran-aligned Houthi group, which has been fighting a coalition including the UAE in Yemen, also welcomed the truce.

The nationwide truce is the first for years in Yemen's seven-year conflict and will allow fuel imports into Houthi-held areas and some flights to operate from Sanaa airport, a United Nations envoy said on Friday.

"This was a threat to supply, and a ceasefire would reduce that threat to supply," said Phil Flynn, an analyst at Price Futures Group.

Market participants have been concerned about global supplies since Russia's invasion of Ukraine in late February. Sanctions imposed on Russia over the invasion disrupted oil supplies and drove oil prices to nearly $140 a barrel, the highest in about 14 years.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

On Thursday, Biden announced a release of 1 million barrels per day (bpd) of crude oil for six months from May, which at 180 million barrels is the largest release ever from the U.S. Strategic Petroleum Reserve (SPR).

On Friday, member countries of the International Energy Agency committed to another coordinated oil release in an extraordinary meeting, according to Japan's industry ministry.

Still, "when you look at the release from the SPR, there are still a lot of questions about how they're going to get all that oil out of there," Flynn said. "We'll have to wait and see."

Meanwhile, the Russian state-owned energy giant Gazprom (MCX:GAZP) said on Sunday it was continuing to supply natural gas to Europe via Ukraine in line with requests from European consumers.

Latest comments

sure, not...
will not last the week. just a smidgen of a drop
🙏
America can't put up with peace, war and chaos is what America wants.
Muerte pootun
Oil prices fell at the start of Asian trade on Sunday lol dip please i need more
Up up upMoon!
Wow, a truce, what timing
A retracement in CJ?
Bet oil opens like nuclear diving bell
if that means up, I agree, 100%, not up a 100% , well, you know what I mean, and up 20% is right though
bet oil prices will go up.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.