Oil Prices Plummet Amid Reports of Potential European Stock Releases
Oil prices plummeted on Friday morning after reports emerged of potential stock releases in Europe to alleviate a global diesel shortage. The International Energy Agency (IEA) members may release up to 50 million barrels of crude, while EU states discuss releasing 50 million barrels of diesel as proposed by France.
The move comes amid growing pressure from the U.S. on Europe to boost supplies and ease the shortage. Brent crude futures with December expiry traded 3.1% lower at $99.13 per barrel, while U.S. West Texas Intermediate futures with November expiry fell 4% to $89.18.
The potential reserve release has sparked a sharp decline in oil prices, extending losses from earlier in the session. The move is aimed at mitigating the effects of the global diesel shortage and meeting growing demand for supplies.