Russia-Ukraine crisis: Oil prices dive as US considers record reserves release

Russia-Ukraine crisis: Oil prices dive as US considers record reserves release

International Energy Agency member countries are due to meet on Friday to decide on a collective oil release.

By Reuters Published: Thu 31 Mar 2022, 11:36 AM Last updated: Thu 31 Mar 2022, 11:38 AM

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 LCOc1 for May fell $4.11, or 3.6 per cent, to $109.34 a barrel by 0637 GMT. The May contract expires on Thursday and the most actively traded June futures were down $4.36 at $107.08, having earlier slid by more than $6.

US West Texas Intermediate futures CLc1 for May delivery fell $5.33, or 4.9 per cent, to $102.49 a barrel after touching a low of $100.85.

US President Joe Biden will give remarks 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.

Such a release would help the oil market to rebalance in 2022 by increasing supply by 1 million barrels per day (bpd) for six months, Goldman Sachs analysts said in a note.

"This would remain,