Crude oil prices continued to drop today, with WTI futures falling below $94 and Brent futures below $99.
- WTI crude futures were down $4.34, or 4.42 percent, at $93.92 a barrel.
- BRENT crude futures settled at $4.19, or 4.08%, at $98.59 a barrel.
Oil prices were already rattled last week by news of the release of strategic crude oil stocks by members of the International Energy Agency (IEA) and the announcement of the Shanghai lockdown. The latter will affect oil consumption in China, the world’s largest oil importer.
The IEA and its members have decided to withdraw 60 million barrels of oil from member countries’ oil reserves over the next six months. The U.S. will also contribute 60 million barrels of oil as part of President Biden’s plan to release 180 million barrels of oil.
The IEA has 31 member countries, the largest of which are the United States, the United Kingdom, Germany, France, Canada, Japan, and South Korea.
European Union (EU) officials will hold talks with OPEC officials in Vienna today to discuss increasing OPEC capacity.
OPEC+ has decided to increase oil production to just 432,000 barrels per day in May, despite calls from the United States and other oil-importing countries for OPEC+ to increase production more than it has in the past. Oil prices recently rose above $139 per barrel, the highest level since 2008, after Russia sent troops to invade Ukraine on Feb. 24.
The EU imposed sanctions on Russian coal imports last week and will likely soon impose sanctions on Russian oil as well. Following the measures taken by the United States, Canada and Australia in retaliation for the Russian attack on Ukraine.
The Spot Market is Open
Monday, April 11, 2022