Oil prices fall as the US considers record reserve release
Oil prices fell more than $5 a barrel on Thursday amid news that the United States is considering the largest release in its nearly 50-year history, from strategic oil reserves to 180 million barrels.
The 180 million bpd release would help fill the shortage to some extent if it happens, but not all. What matters is whether this action will be part of a wider coordinated release.
May Brent futures fell $5.47, or 4.8%, to $107.98 a barrel at 0608 GMT. The May contract expires on Thursday and the most actively traded June futures fell $5.26 to $106.18.
West Texas Intermediate (WTI) futures for May delivery fell $6.23, or 5.8%, to $101.59, after previously falling to $100.85.
US President Joe Biden will make statements on Thursday about his administration's actions to reduce gasoline prices, which have soared to a record high after Russia's invasion of Ukraine.
The International Energy Agency (IEA) member states are said to meet at 1200 GMT on Friday to decide on the bulk oil release.
News of possible US oil releases eclipsed Thursday's meeting between the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia.
The group, known as OPEC+, is expected to stick to an agreement to gradually increase oil production. OPEC+ is still reluctant to support production. The release of US oil could be effective in calming price fluctuations and restraining sharp upward movements.
U.S. commercial oil inventories fell 3.4 million barrels in the week to March 25, beating estimates for a 1 million barrel decline. At the same time, implied demand for gasoline and distillates fell.
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