Oil prices are falling slightly as they negotiate closely in the run-up to a meeting of major consumer countries to discuss the possibility of a new release of oil emergency reserves, along with a huge planned similar move by the US.
US WTI crude futures are down 40 cents at $ 99.89 a barrel after hitting $ 101.75, down 7% on Thursday.
Brent futures are down 8 cents at $ 104.63 a barrel after closing 5.6% yesterday.
The planned release of stocks from the US caused the fall on Thursday. On Friday, the two indexes of contracts lead to weekly losses of 13%, the highest of the last two years.
IEA member states will meet today to discuss a further emergency release that will follow the March 1st agreement to release about 60m barrels.
On Thursday, Biden announced the release of 1 million barrels a day from the United States for six months, starting in May. This will be the largest such move ever made by US Strategic Petroleum Reserves.
The goal is to replace the problems with oil supplies from Russia that have been hit by sanctions since the invasion of Ukraine.
However, prices could reverse if release is delayed or delayed or if deliveries are lower than those reported in the White House announcement.
The market is waiting to see how much oil the IEA countries will agree to release but do not expect it to have a major long-term impact on the market.
Source: Capital
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