International oil price drops below $100 | Check latest rate
India Today
Brent crude for June delivery was down $3.93, or 3.8 per cent, at $98.85 a barrel. U.S. West Texas Intermediate crude lost $4.19, or 4.3 per cent, to $94.07.
Oil prices dropped by $4 a barrel on Monday, with Brent crude tumbling below $100 on plans to release record volumes of crude and oil products from strategic stocks and on continuing coronavirus lockdowns in China.
Brent crude for June delivery was down $3.93, or 3.8 per cent, at $98.85 a barrel. U.S. West Texas Intermediate crude lost $4.19, or 4.3 per cent, to $94.07.
Bank of America maintained its forecast for Brent crude to average $102 a barrel for 2022-23, but it cut its summer spike price to $120. Swiss investment bank UBS also lowered its June Brent forecast by $10 to $115 a barrel
"The release of strategic government oil reserves should ease some market tightness over the coming months, reducing the need for oil prices to rise to trigger near-term demand destruction," said UBS analyst Giovanni Staunovo.
International Energy Agency (IEA) member nations will release 60 million barrels over the next six months, with the United States matching that as part of its 180 million barrel release announced in March.
The moves are aimed at offsetting a shortfall in Russian crude after Moscow was hit with heavy sanctions over its invasion of Ukraine, which Moscow describes as a "special military operation".
The release of Strategic Petroleum Reserve (SPR) volumes equals 1.3 million barrels per day (bpd) over the next six months and is enough to offset a shortfall of 1 million bpd of Russian oil supply, JP Morgan analysts said.
