Oil Prices Plummet on Diesel and Crude Stock Release Talks
Oil prices fell sharply on Friday after reports of talks over additional diesel and crude stock releases. Brent crude dropped by $2.83, or 2.77%, to $99.48 a barrel, while West Texas Intermediate (WTI) fell by $3.35, or 3.61%, to $89.52 a barrel.
The price drop came as European Union countries discussed releasing additional diesel stockpiles in response to US pressure on European nations to unleash more supplies and reduce surging fuel prices. According to a source familiar with the details of the discussion, EU countries discussed releasing 50 million barrels of diesel and 50 million barrels of crude oil.
Ole Hansen, head of commodity strategy at Saxo Bank, said that the energy market is no longer concerned about crude availability but rather refined product supply. He noted that reduced refinery capacity and output across the Middle East and Russia are constraining refined product supply.