The drop to near $90/barrel followed the IEA’s announcement of a 60 million barrel release from the strategic petroleum reserves of it member countries, including a 30 million barrel release from the US Strategic Petroleum Reserve. Ostensibly a reaction to the loss of Libyan production and an attempt to inject some elasticity of supply back into the market, the release was widely seen as an attempt to lower pump prices for consumers.
Oil rose for a third straight session on Thursday, lifted by upbeat U.S. economic data, signs of a deal to bailout Greece and confirmation the International Energy Agency would not release more emergency stocks for now.
The market shook off early losses caused by weak economic data from China and turned positive as euro zone leaders were set to give their financial rescue fund new powers to help Greece overcome its debt crisis, easing concerns that have weighed on oil and other markets in recent weeks.
Further support came from upbeat data showing factory activity in the U.S. Mid-Atlantic region bounced back in July, as well as news members of the IEA decided against releasing more oil stockpiles despite the threat of high prices to the economic recover.
The IEA shocked oil markets in June, announcing it would release 60 million barrels of oil to help replace disruptions of Libyan supply and bring down prices. Prices initially plunged, but in the month since the announcement, Brent prices have climbed back more than $10 a barrel.
Brent LCOc1 traded up 23 cents to $118.38 a barrel at 11:11 a.m. EDT (1522 GMT). U.S. crude CLc1 rose $1.21 to $99.61 a barrel after topping $100 a barrel for the first time since June 10 For the latest updates PRESS CTR + D or visit Stock Market news Today
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