Crude Oil Bounces As Traders Mull Reserves Release

WTI Crude Oil rose more than 1% to above $97 per barrel on Thursday, recouping some losses after tumbling 5.6% in the previous session, as traders reassessed news that consuming nations will release a huge amount of oil from strategic reserves to offset supply lost from Russia.

IEA member countries agreed to release 60 million barrels on top of a 180 million barrel release announced by the US last week to help drive down prices in a tight market following Russia’s invasion of Ukraine.

However, analysts are skeptical on whether the emergency release of oil reserves would have much of an impact on the market.

Stalled indirect talks between Iran and the US that would have led to a potential lifting of sanctions and an increase in Iranian oil exports also kept the upward pressure on crude prices.