WTI trades below $82.00 as IEA plans record Oil reserve release
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WTI declines as the International Energy Agency considers its largest-ever oil reserve release to stabilize markets.
The Israel Defense Forces launched a new wave of strikes targeting Iran and Lebanon.
Major Middle Eastern producers cut output by over 6 million bpd as the Strait of Hormuz remains effectively closed.
West Texas Intermediate (WTI) crude oil price gave up gains from the previous session, trading around $81.70 per barrel during the Asian hours on Wednesday. Oil prices fall after the Wall Street Journal reported the International Energy Agency (IEA) is considering its largest-ever oil reserve release to stabilize markets. The proposed drawdown would surpass the 182 million barrels released in 2022 following Russia’s invasion of Ukraine.
However, losses in oil prices may remain limited due to rising uncertainty surrounding the Iran conflict and shipping disruptions through the crucial Strait of Hormuz. Meanwhile, US Central Command reported that the US military had “eliminated” 16 Iranian mine-laying vessels near the Strait of Hormuz on Tuesday. The action followed warnings from United States (US) President Donald Trump that any mines placed in the Strait by Iran must be removed immediately.
The Israel Defense Forces reported launching a new wave of strikes on Iran after explosions were heard in Tehran. Israel also fired additional missiles toward Lebanon, where its military said it was targeting infrastructure linked to Iran-backed Hezbollah in southern Beirut.
President Trump said late Monday that the conflict could end soon. However, US officials indicated on Tuesday that military operations were intensifying, with limited prospects for diplomatic negotiations, Reuters reported.
Major Middle Eastern producers, including Saudi Arabia, the United Arab Emirates (UAE), Kuwait, and Iraq, have collectively reduced output by more than 6 million barrels per day (bpd) as the Strait of Hormuz remains effectively closed. In addition, the largest oil refinery in the UAE halted operations after being hit by a drone strike.
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