Crude Oil Prices Decline Following IEA Proposal for Reserve Release

Crude Oil Prices Decline Amid IEA Proposal to Release Oil Reserves

Key Figures:

• $87.57: Brent crude oil price per barrel
• 0.26%: Decline in Brent crude oil price
• $83.08: US West Texas Intermediate (WTI) crude futures price per barrel
• 0.44%: Decline in US WTI crude futures price
• 182 million barrels: Oil reserves released by IEA member countries in 2022
• 50%: Rise in Brent crude oil prices since the start of the year

Market Update

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On Wednesday, crude oil prices declined following a report that the International Energy Agency (IEA) proposed the largest release of oil reserves in its history to mitigate soaring crude prices amid the US-Iran war. The Brent crude oil price fell 0.26% to $87.57 a barrel, while the US West Texas Intermediate (WTI) crude futures declined 0.44% to $83.08.

Market Volatility

Overnight, US WTI crude and Brent front-month crude futures settled down over 11%. The Brent crude oil price has risen nearly 50% since the start of the year due to the effective closure of the Strait of Hormuz, which typically handles one-fifth of global oil flows.

US-Iran War Update

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The US-Iran war has entered its second week with no indication of de-escalation. The US and Israel pounded Iran with what the Pentagon and Iranians on the ground called the most intense airstrikes of the war. The Group of Seven nations asked their main energy agency to prepare scenarios for the release of emergency oil reserves, as reported by Bloomberg.