Washington: Oil rose in Asia on Thursday even after announcements of huge releases of crude from strategic reserves in an attempt to bring down prices in the wake of the Iran war. At around 0100 GMT, Brent Crude was up 7.2 percent at $98.60 per barrel while West Texas Intermediate was 6.5 percent higher at $92.96.
According to Bangladesh Sangbad Sangstha, the United States Department of Energy announced on Wednesday that it will release 172 million barrels from the strategic petroleum reserve starting next week. The release is expected to take approximately 120 days to deliver based on planned discharge rates, as stated by the agency in a post on X.
On the same day, the International Energy Agency revealed that its members had agreed to unlock 400 million barrels of oil from their reserves, marking their largest release ever. Japan announced it would release its oil reserves as soon as Monday, while Germany indicated similar plans without specifying a date.
The backdrop to these measures is the ongoing conflict between Iran and US-Israeli forces, which began on February 28. Iran has retaliated by targeting locations across the oil-rich Gulf, leading to the effective shutdown of the Strait of Hormuz. This waterway is a critical channel for nearly 20 percent of the world’s oil supply, and its closure has exacerbated concerns over global oil availability.
On the stock market front, Japan’s Nikkei index fell by just over one percent, while South Korea’s Kospi remained flat, highlighting the mixed investor sentiment amid geopolitical tensions and efforts to stabilize oil prices.