Oil prices plunged into negative territory on Friday ahead of a meeting of International Energy Agency (IEA) member states to boost supplies as well as discuss the release of emergency oil reserves by the US.
Benchmark Brent and WTI contracts were on course for their most significant weekly declines in two years at 13 per cent and 12 per cent respectively.
Oil prices fluctuated during the day, fueled by increased optimism of US supplies and fears of Russia’s demand for ruble gas payments.
Brent crude futures were down 0.5 per cent at around $104 a barrel as of 1055 GMT. US West Texas Intermediate (WTI) crude futures were down 37 cents, or 0.4%, at $99.91. On Thursday, Brent crude futures for the previous period, which ended yesterday, closed 5.6 per cent lower at $107.91.
US West Texas Intermediate (WTI) crude futures were down nearly 1 per cent at $99.39 a barrel in previous trade after hitting a high of $101.75; The contract had lost 7 per cent on Thursday.
The US announced the most significant release on record of crude oil from its Strategic Petroleum Reserve (SPR) for six months starting May at 1 million barrels per day.
Indeed on Thursday, US President Joe Biden announced the release of 1 million barrels per day (bpd) for six months starting in May, the most significant release ever from the SPR.
International Energy Agency (IEA) member countries are due to meet on Friday to discuss another emergency oil release that would follow their March 1 agreement to release about 60 million barrels, Reuters reported.
While that planned release from the US is likely to cover up Russian gas disruptions, oil-producing countries stuck to their plans for modest supplies in May, despite pressure to use their excess capacity to boost production further. in spite of.
Indeed, OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies including Russia, is stuck with plans to increase its May production target by 432,000 bpd to add more despite Western pressure.
Investors are also concerned about the impact of the Russian president’s demand for gas payments in rubles starting today or risk cutting supplies, which Germany called “blackmail”.
Consultancy Eurasia Group said in a note, however, that oil prices could change if the release is curtailed or delayed or if delivery volumes are less than the amounts outlined by the White House.