Oil prices dive as US considers record reserves release

Oil prices dive as US considers record reserves release

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LONDON - Oil prices plunged on Thursday on news that the United States was considering the release of up to 180 million barrels from its Strategic Petroleum Reserve, the largest in the near 50-year history of the SPR.

Brent crude futures for May fell $4.87, or 4.3%, to $108.58 a barrel by 0855 GMT. The May contract expires on Thursday and the most actively traded June futures were down $5.08 at $106.36, having earlier slid by more than $6.

U.S. West Texas Intermediate futures for May delivery fell $5.90, or 5.5%, to $101.92 a barrel after touching a low of $100.53.

U.S. President Joe Biden will speak later on Thursday regarding his administration's actions aimed at lowering gasoline prices that have risen to record highs since Russia began its invasion of Ukraine.

"Desperate times, clearly call for desperate measures and clearly the Biden administration believes the spike in oil prices warrants this move to eat into the country’s emergency supplies," said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

"A drip release of 1 million barrels of oil is on the cards for the next six months, a sign that there is not expected to be a quick resolution to the crisis in