New Delhi, March 11 (IANS). There was a decline in the price of crude oil on Wednesday and it has slipped below $ 90 per barrel. The reason for this is believed to be the proposal by the IEA to increase the supply of crude oil by releasing emergency reserves.
According to reports, the International Energy Agency (IEA) is considering supplying crude oil from the emergency reserve to reduce the increased crude oil prices after the US-Iran war.
According to multiple reports, the proposed supply from the emergency reserve would exceed the 182 million barrels released in two phases following Russia’s invasion of Ukraine in 2022. The G7 countries have requested the IEA to be prepared for such a step.
Following these reports, the price of Brent crude oil fell 0.99 percent to $ 86.93 per barrel, while US West Texas Intermediate (WTI) futures fell 0.75 percent to $ 82.82.
In recent days, due to the closure of the Strait of Hormuz, Brent crude had seen a rise of almost 50 percent and it had reached the level of $ 119 per barrel.
The Strait of Hormuz is a narrow strait located on the main sea trade route in the Middle East, through which about 20 percent of the world’s crude oil passes.
One reason for the fall in crude oil is believed to be the statement of US President Donald Trump, in which he said that America’s war with Iran may end soon.
However, the US-Iran war has entered its second week and there is no sign of a resolution. President Donald Trump has warned Iran after reports of Iran laying or preparing mines in the Strait of Hormuz.
On Tuesday, President Trump posted on social media, “If Iran has placed any mines in the Strait of Hormuz and we have no reports of them, we want them removed immediately!” He further said that removing landmines “would be a huge step in the right direction!”
–IANS
abs/