WTI crude oil futures closed lower on Friday (April 1), posting their steepest weekly decline in two years after the U.S. government announced the largest drawdown from strategic oil reserves. This caused the price of U.S. crude oil to fall below the $100 per barrel mark.
- WTI crude futures were down $1.01, or 1%, at $99.27 a barrel.
- BRENT crude futures were down 32 cents, or 0.3%, at $104.39 a barrel.
For the week, WTI crude futures fell 12.8% and Brent futures fell 11.1%, the largest weekly percentage decline since late April 2020.
Crude oil prices fell after the United States announced its largest drawdown of crude oil reserves. The International Energy Agency (IEA) and its members will also jointly draw down emergency reserves.
President Joe Biden has authorized the withdrawal of 1 million barrels per day from U.S. strategic reserves for the next six months.
Analysts said that such a drain on oil reserves could prevent oil prices from rising in the short term and is expected to help temporarily solve the problem of oil shortages on the world market. Especially since the war in Ukraine continues.
Other IEA members, including Europe, Canada, Japan and South Korea, said Friday they had also agreed to draw oil from emergency reserves, as the United States has done.
Critics, however, see it somewhat differently. The strategic oil reserves are actually needed to provide the necessary oil in times of emergency and not to counter bad energy policies.
The Spot Market is Closed
Saturday, April 2, 2022