Although the oil industry is producing at record production levels, the profit isn’t there for producers.
Oil prices slipped Friday morning ahead of a meeting of consuming nations to discuss a new release of emergency oil reserves alongside the release announced by the United States.
U.S. West Texas Intermediate (WTI) crude futures lost $1.11 to $99.18 a barrel. The contract slumped 7% on Thursday.
Brent futures declined 94 cents to $103.77 a barrel, after dropping 5.6% on Thursday.
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The planned U.S. release caused Thursday’s falls. The two benchmark contracts were headed for a weekly loss of around 13%, their biggest in two years, according to Reuters.
FILE PHOTO: Storage tanks are seen at Marathon Petroleum’s Los Angeles Refinery, which processes domestic & imported crude oil. Picture taken with a drone. (REUTERS/Bing Guan / Reuters Photos)
International Energy Agency (IEA) member countries are set to meet on Friday to discuss a further emergency oil release.
President Biden on Thursday announced a release of 1 million barrels per day for six months starting in May.
The aim is to make up for disrupted oil supplies from Russia, hit by sanctions following its invasion of Ukraine.
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The Organization of the Petroleum Exporting Countries and allies including Russia, together called OPEC+, stuck to plans to add a modest 432,000 barrels per day of supply in May. Other countries had pressured members to use their spare capacity to boost output further.
