SULAIMANI (ESTA) — Oil prices fell about $1 on Friday, ahead of a meeting of consuming nations to discuss a new release of emergency oil reserves alongside a huge planned release by the United States.
Brent crude futures slid by 64 cents to $104.3 a barrel at 0834, after dropping 5.6% on Thursday.
U.S. West Texas Intermediate (WTI) crude futures were down 94 cents at $99.64 a barrel, after trading as high as $101.75.
The planned U.S. release caused Thursday’s falls.
On Friday the two benchmark contracts were headed for a weekly loss of 13% to 14%, their biggest in two years, according to Reuters.
Reuters reported that member nations of the International Energy Agency (IEA) would meet at 1200 GMT on Friday to discuss a further emergency oil release that would follow their March 1 agreement to release about 60 million barrels.
On Thursday, U.S. President Joe Biden announced a release of 1 million barrels per day for six months, starting in May. That will be the largest release ever from the U.S. Strategic Petroleum Reserve (SPR), Reuters said.
The aim is to make up for disrupted oil supplies from Russia, hit by sanctions following its invasion of Ukraine, which Moscow calls a “special operation” to disarm its western neighbour.
Oil prices could reverse course, however, if the release is scaled back or delayed or if delivered volumes are less than those mentioned by the White House, Reuters cited consultancy Eurasia Group as saying.
