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Oil extends drop below US$100 as US plans huge reserves release

Bloomberg4/1/2022 09:34 AM GMT+08  • 2 min read
Oil extends drop below US$100 as US plans huge reserves release
West Texas Intermediate futures is down almost 13% for the week / Bloomberg
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Oil slid below US$100 a barrel and is heading for the biggest weekly loss in almost two years after the Biden administration ordered an unprecedented release of strategic US reserves to tame rampant prices.

West Texas Intermediate futures dropped 0.8% in early trading Friday, and are down almost 13% for the week. The US plans to release 1 million barrels a day for six months, although analysts warned any reprieve would be short-lived. The news filtered into the market early on Thursday, just before the OPEC+ alliance gathered to ratify a modest increase in supply for May.

Russia’s war in Ukraine has roiled global commodity markets and driven up the price of everything from food to fuels, challenging governments seeking to encourage economic growth after the pandemic. It’s led to tumultuous trading in the oil market, with wild swings during sessions throughout March.

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