Crude Oil Prices Decline with Possible Release of Strategic Crude Supplies

In New York, oil dropped from its highest close in two days following the statement of France that industrialized countries are thinking of releasing supplies of strategic crude to fight an increasing crude oil price chart.

Oil futures declined by almost 0.4% after Eric Besson, the Industry Minister of France, said that the nation is examining all possible alternatives together with its partners. One of the options is to release reserves of oil.

Crude prices have increased on worries that sanctions imposed on Iran for the purpose of ending its nuclear program will obstruct exports of crude. WTI crude prices recently increased after government record posted an unexpected fall in the supplies of the United States.

Barratt Bulletin’s chief executive, Mr. Jonathan Barratt, said that all the powers are now aimed at reducing oil prices. He further adds that the bulls and bears are in a relatively equal match since Iran comes up when prices lower and the Fed, Saudi Arabia and U.K. come out committing to appease any concerns when crude prices gets high.

Oil prices for delivery in May dropped by 46 cents to reach $106.81 per barrel in the New York Mercantile Exchange’s electronic trading. It even reached $107.05 during mid day trading at Sydney. Recently, it also gained as much as $1.20 to close at its highest level of $107.27 since the 19th of March. This year, front month oil prices are higher by 8.3%.

In London’s ICE Futures Europe Exchange, May settlement’s Brent oil reached $124.11 per barrel, a rate that is lower by 9 cents. The price of Europe’s benchmark contract for West Texas Intermediate was at $17.06.

By: Chris Termeer