Brent crude falls more than $6/bbl on IEA releasing 60m bbls of oil

23 June 2011 15:05  [Source: ICIS news]

LONDON (ICIS)--Brent crude on London’s ICE futures exchange fell more than $6/bbl on Thursday to just under $108.50/bbl, after the International Energy Agency (IEA) announced it will make 60m bbls of oil available to the market in order to offset Libyan disruption.

The 28 IEA member countries have agreed to make 2m bbls/day of oil available from their emergency stocks over an initial period of 30 days in response to the ongoing shortage of oil supplies from Libya as greater tightness in the oil market threatens to undermine the global economic recovery. 

“I expect this action will contribute to well-supplied markets and to ensuring a soft landing for the world economy,” said IEA executive director Nobuo Tanaka.

Meanwhile, the US dollar strengthened this morning after the US Federal Reserve indicated that further monetary injections will not be implemented.

By 13.10 GMT, August Brent crude had hit a low of $108.10/bbl, a loss of $6.11/bbl from Wednesday’s close of $108.10/bbl, before recovering to around $108.46/bbl.

At the same time, August NYMEX light sweet crude futures were trading around $91.09/bbl, having hit a low of $90.32, a loss of $5.09 from the previous close.

By: Kawai Wong
+44 20 8652 3214

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