New Delhi। Crude oil trades below $100 mark after the release of oil from US strategic reserves, the fear of a slowdown in China due to the Covid outbreak, and Fed stance dragged the commodity to over 3% this week.
Amid rising oil prices the US recently announced its decision to release 180 million barrels of oil from its SPR reserves. After the USA, IEA member countries too have decided to release about 60 million barrels of crude oil from their strategic SPR reserves. In order to cool down the global crude oil prices, which had gone up due to the supply constraints after the sanctions imposed on Russia, after the Ukraine-Russia war.
According to Macquarie’s research, this is the biggest release from the reserves since the reserves were created in 1980, it will not change the fundamentals of the oil market. However, it will further delay the rise in output from key producers.
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at the time of writing this report, Future prices of June Brent crude were trading at $99.98, down by 1.07 percent, and May crude futures on WTI were trading at $95.61, down by over 0.44 percent. Which is about 4% lower in the week.
While April crude oil futures of MCX is trading at ₹7,270 in the morning against yesterday’s close of ₹7,278, down by about 0.11 percent, and May futures were at ₹7,250 against yesterday’s close of ₹7,252, down by 0.01 percent.
The volatility in the oil prices was attributed to the recent Russia-Ukraine. Where countries like the US and the UK have imposed sanctions on Russia which has tightened the oil supply from Russia, one of the major oil-producing nations in the world.
