Oil was stable on Monday in a volatile session as the release of strategic reserves by consuming countries eased concerns over supply shortages amid Russia’s invasion of Ukraine and the lack of a nuclear deal with Russia. Iran.
Last week, crude fell 13% after the president of the United States, Joe Biden, announced a record release of oil reserves and that the members of the International Energy Agency they promised to continue exploiting the reserves. Crude reached $139 last month, its highest since 2008.
“The massive release of 1 million barrels per day over a six-month period in the United States alone will likely ensure that the oil market is no longer severely depleted in the second and third quarters,” he wrote in a report. Carsten Fritsch of Commerzbank.
At 11:07 GMT, crude Brent fell 7 cents, or 0.07%, to $104.32 a barrel, while the West Texas Intermediate In the United States (WTI) it was up 3 cents, or 0.05%, at $99.29. Both contracts improved by more than a dollar in the session.
Russia’s invasion of Ukraine in February intensified supply concerns that were already propping up prices. Sanctions imposed on Russia and buyers shunning Russian oil have already caused production to decline and raise fears of further losses.
The release of reserves will alleviate, but not eliminate, the supply deficit, according to oil broker PVM.
In view of this, it will take courage to bet on oil prices finding a new home below $100 a barrel,” said Stephen Brennock of PVM.
Crude was helped by the pause in talks to revive the Iranian nuclear deal, which would allow sanctions on Tehran’s oil to be lifted. Iran on Monday blamed the United States for the standstill.
