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Crude Oil Drops On Plans To Dip Into Strategic Reserves; OPEC+ Sticks To Output Plan

Crude oil prices slumped on Thursday upon reports that the U.S. was planning to dip into the strategic oil reserves to arrest the rising prices. The International Energy Agency is also meeting on Friday to coordinate a similar collective oil release exercise by other nations.

The move comes amidst the OPEC+ meeting on Thursday that decided to stick to the 432,000 barrels per day output increase scheduled for the month of May. The West had been demanding that the OPEC+ group increase production as surging oil prices have contributed to soaring inflation worldwide.

Brent Oil Futures for June settlement is currently trading at $106.02, down 4.86 percent from Wednesday’s close of $111.44. The day’s trade ranged between a high of $110.99 and a low of $104.47.

Brent Oil Futures had jumped to a high of $139.13 on March 7 in the aftermath of the Russian invasion of Ukraine and the attack on a nuclear power plant. Prices of the black fluid had however cooled off and touched a low of $96.93 on March 16 amidst demand related fears, only to surge again to as high as $123.74, a week ago.

Likewise, West Texas Intermediate crude for May settlement on Thursday traded between a high of $107.77 and low of $100.20.

It is currently trading at $102.14, having dropped 5.27 percent from Wednesday’s close of $107.82.

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