Oil Prices Drop After Proposal for Largest Withdrawal from Global Reserves

Oil Prices Drop After Proposal for Largest Withdrawal from Global Reserves

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Oil prices declined in trading today, Wednesday, following reports about a proposal put forward by the International Energy Agency to withdraw the largest amount of strategic oil reserves in its history, anticipating potential supply disruptions.

Brent crude futures fell by about 23 cents, or 0.26 percent, settling at $87.57 per barrel.

Meanwhile, West Texas Intermediate crude dropped by 37 cents, or 0.44 percent, reaching $83.08 per barrel.

The Wall Street Journal reported, citing informed officials, that the proposed withdrawal from oil stocks could exceed 182 million barrels, a volume that member countries of the agency released to the market in two phases during 2022.

This development comes at a time when crude prices have experienced significant fluctuations in recent days, as both crude types fell by more than 11 percent on Tuesday, marking the largest decline since 2022, following statements from former U.S. President Donald Trump suggesting an end to the conflict.

Just one day prior, the price of West Texas Intermediate crude surged to over $119 per barrel, reaching its highest level since June 2022, before prices began to decline again amid expectations of increased supply in the market.

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