NEW YORK, LONDON: Oil futures fell sharply on Wednesday following a surprising rise in US crude stocks and after large consuming nations said they would release oil from reserves in conjunction with the United States to counter tightening supply. That US 60 million commitment is part of Washington’s previously announced plans to release a million barrels a day for the next six months for a rough total of 180 million barrels.
Crude markets have been through weeks of volatility, with prices surging on supply concerns after Russia’s invasion of Ukraine and subsequent sanctions on Moscow by the United States and its allies.
“The SPR release was huge which does raise confidence that they can move a lot out of the reserve on a weekly basis,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
US crude stocks rose unexpectedly in the most recent week as production reached its highest level since before the outset of the coronavirus pandemic, the Energy Information Administration said on Wednesday.