| Crude oil rigs in the Permian Basin, USA. © Reuters=News1 |
Due to the crisis in Ukraine, the international oil price, which had surpassed $100 per barrel, fell below $100.
In New York trading on the 1st (local time), West Texas Intermediate Oil (WTI) recorded $99.27 per barrel, down 1% from the previous trading day. WTI fell below $100 for the first time since March 17.
Brent crude from North Sea, a benchmark of international oil prices, also closed at $104.39 per barrel, down 0.3% from the previous trading day.
As a result, on a weekly basis, Brent crude fell 14% and WTI fell 13%, respectively. This is the largest decline in two years.
The reason for the drop in oil prices on that day is believed to be because the United States announced the largest-ever release of strategic oil reserves on the previous day, and other countries also agreed to participate in the release of strategic oil reserves.
U.S. President Joe Biden announced that more than 30 countries have agreed to participate in the U.S. strategic oil release.
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| US President Joe Biden, speaking to the public at the White House in Washington on the 31st (local time), announced that he would release 1 million barrels of oil a day from the strategic stockpile, saying that “international oil prices are rising because of Putin’s actions.” © AFP=News1 © News1 Reporter Dongmyeong Woo |
The U.S. previously agreed to release 180 million barrels of strategic oil from its strategic oil reserves by 1 million barrels per day. 180 million barrels is equivalent to two days’ worth of global demand. The U.S. plans to release 1 million barrels per day of its strategic oil reserves for six months.
sinopark@news1.kr
