Oil price drops more than 2% on talks over diesel, crude stock releases
USO•Brent fell 2.51% to $99.74 a barrel and U.S. West Texas Intermediate dropped 3.8% to $89.34 after European countries discussed releasing diesel and crude stockpiles. European gasoil futures fell about 5%.
1. Oil prices fall
Brent fell $2.57 to $99.74 a barrel, while West Texas Intermediate dropped $3.53 to $89.34. Both benchmarks were poised for weekly declines, with Brent down about 4.1% and WTI lower by around 3.2%. European gasoil futures fell about 5% to $1,380.50 a metric ton.
2. Stock release proposal
European Union governments discussed a French proposal to release 50 million barrels of diesel, while International Energy Agency members would release 50 million barrels of crude, a source familiar with the discussion said. Ole Hansen of Saxo Bank said refined product supply was the main stress in the energy market. Barclays raised its fourth-quarter Brent forecast by $20 to $115 a barrel and its 2026 forecast to $100.
