Oil prices dive as Biden weighs massive reserves release

Shafaq News / Oil prices dived more than $5 a barrel on Thursday as the United States is considering the release of up to 180 million barrels from its strategic petroleum reserve (SPR) over several months to calm soaring crude prices.

Brent futures for May fell $5.47, or 4.8%, to $107.98 a barrel at 0317 GMT. The May contract expires today and the most actively traded June future was down $5.22 to $106.22.

U.S. West Texas Intermediate futures for May delivery fell $6.06, or 5.6%, to $101.76 a barrel after earlier slipping to a low of $100.85.

U.S. President Biden will give remarks later on Thursday announcing the plan, three sources said, aimed at lowering gasoline prices that have risen to records following Russia's invasion of Ukraine.

The International Energy Agency has called an emergency ministerial meeting for Friday to discuss oil supply, a spokesperson for Angus Taylor, the Australian energy Minister, said on Thursday.

News of the potential U.S. oil release overshadowed a meeting set for later on Thursday between the Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia. The group known as OPEC+ is expected to stick to its existing deal to gradually increase oil production.

Oil settled up around 3% on Wednesday, driven by supply concerns as peace talks to end the war between Russia, which calls its actions a "special operation",and Ukraine have stalled.

Russia is the world's second-largest oil exporter and sanctions imposed as punishment for the invasion have disrupted flows from the country, driving prices higher.

In early March, the Biden administration said it would sell 30 million barrels from the strategic reserves as part of a global release of 60 million barrels to lower prices.

(Reuters)