Crude Prices Plummet on IEA Stock Release Proposal Amid Iran Tensions
The price of crude oil has fallen sharply after reports emerged that France proposed releasing 50 million barrels of diesel and 50 million barrels of crude across IEA members. The proposal is conditional on a US commitment not to impose a unilateral diesel export ban, following Washington's request for major European countries to release diesel reserves.
The move comes amid continued US-Iran tensions, with President Trump reportedly telling aides he expects bombing of Iran to resume in November and the Pentagon sending a third carrier strike group to the region. The IEA-coordinated proposal aims to ease fuel-price problems by releasing stockpiles, but its durability will depend on whether releases are crude or product.
The price of WTI fell from $90.80/bbl to $89.88/bbl, while Brent fell from $100.90/bbl to $99.76/bbl. European gasoil futures fell over 4% on the reports. Precious metals are firmer ahead of US NFP, helped by the pullback in oil prices and some reprieve in global yields.