Oil price falls on release talks
Brent crude oil prices fell 1.1% to $123.53 to last night as it emerged leaders of developed economies are in talks to release emergency reserves to push fuel prices lower.
At the same time, Saudi Arabia’s oil minister said the country would do all it could to see lower oil prices.
The news shaved $2 off the price of a barrel, which is up more than 15% this quarter, and US oil stocks also closed weaker. Basic materials stocks were down 1.36%, according to Google Finance.
The US, UK, France and Japan are mulling the release of billions of barrels of oil to the market in the hope lower fuel prices will boost economies. Although nothing has been confirmed, a release of oil is likely to happen in the the next three months, the FT reports.
Ali Naimi, Saudi Arabia’s oil minister, also wrote in the publication the country would like to see a “fair and reasonable price that will not hurt the global economic recovery.”
There have been concerns soaring energy prices are a threat to any form of recovery.
Germany, which has the world’s third largest oil reserve, has so far opposed the release plans.
This article was first published on Investment Week