Oil prices have dropped by more than $2 U.S. a barrel on plans to release record volumes of
crude products from strategic stockpiles around the world.
Brent crude oil, the international benchmark, is down $2.08 U.S., or 2%, at $100.70 U.S. a
barrel. West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is down $2.19 U.S., or
2.2%, to $96.07 U.S. per barrel.
Bank of America (BAC) maintained its forecast for Brent crude oil to average $102 U.S. a barrel
for 2022-23. Swiss investment bank UBS (UBS) lowered its Brent crude oil forecast by $10 U.S.
to $115 U.S. a barrel.
International Energy Agency (IEA) member nations will release 60 million barrels of crude oil
from their strategic reserves over the next six months, with the U.S. matching that as part of its
180-million-barrel release announced in March.
The releases are aimed at offsetting a shortfall in Russian crude oil after Moscow was hit with
heavy sanctions over its invasion of Ukraine.
The release of Strategic Petroleum Reserve volumes equals 1.3 million barrels per day over the
next six months and is enough to offset a shortfall of one million barrels per day of Russian oil
supply.
The European Union is drafting proposals for a possible oil embargo on Russia, the foreign
ministers of Ireland, Lithuania and the Netherlands said over the weekend, though there is still
no agreement to ban Russian crude oil products in Europe.
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