Oil tumbles as IEA announces release of 60 million barrels of stock
23 Jun 2011
Crude oil prices plunged more than $5 a barrel today after the International Energy Agency (IEA) announced the release of 60 million barrels of crude across its 28 member countries, in a bid to cool off surging fuel prices.
Benchmark North Sea Brent crude for August delivery fell $5.15 to $109.06 a barrel, on the ICE exchange in London while the August contract for the sweet light crude on New York Mercantile Exchange fell $4.08 to $91.33 a barrel.
In spot trading, oil traded more than $6 a barrel lower for benchmark Brent crude at below $108.
The market also took note of the disappointing private sector activity in Europe and China as also a rise in US jobless claims.
The IEA, a consumer group comprising mostly developed economies, expects the release of 60 million barrels of oil from strategic government stockpiles to push down crude prices and underpin global economic recovery.
IEA moved after the producer cartel, the Organisation of Petroleum Exporting Countries (OPEC) failed to raise production despite assurances from OPEC's biggest producer Saudi Arabia that it would lift supplies unilaterally.
