Oil slides as IEA sets for big reserve release

Oil prices fell on Wednesday following a surprising surge in U.S. crude stocks and after news that the International Energy Agency (IEA) large consuming nations set to release oil from reserves to ease supply woes.

States of IEA will release 120 million barrels from strategic reserves, including 60 million from the United States.

That U.S. 60 million commitment is part of plans to release a million barrels a day over the next 6 months.

The U.S. Energy Information Administration (EIA) said today that U.S. crude stocks rose by 2.4 million barrels in the last week, while analysts had expected a drawdown.

Meanwhile, market players fear of more lockdown in China’s Shanghai amid Covid-19 outbreak, so the demand on oil may ease.

Brent crude futures were down $2.79, or 2.6%, to $103.8 as of (1548 GMT). U.S. crude fell $2.9 or by 2.9% to trade at $99.02 a barrel.