Crude oil futures traded lower on Wednesday morning following reports that the International Energy Agency (IEA) has proposed the release of oil reserves.
At 9.17 am on Wednesday, May Brent oil futures were at $87.40, down by 0.46 per cent, and April crude oil futures on WTI (West Texas Intermediate) were at $83.39, down by 0.07 per cent. March crude oil futures were trading at ₹7694 on Multi Commodity Exchange (MCX) during the initial hour of trading on Wednesday against the previous close of ₹7421, up by 3.68 per cent, and April futures were trading at ₹7630 against the previous close of ₹7353, up by 3.77 per cent.
A report in the Wall Street Journal (WSJ) said that IEA has proposed the largest release of oil reserves to bring down crude prices. It said that the release would be more than 182 million barrels of oil. IEA member countries had released nearly 182 million barrels of oil from the reserves in 2022 when Russia-Ukraine war started.
According to the WSJ report, the IEA member countries are expected to decide on the proposal to release oil from reserves on Wednesday.
Meanwhile, US President Donald Trump has said that the US forces have destroyed inactive mine lauying boats/ships in Strait of Hormuz.
In a post on social media platform Truth Social, Trump said: “If Iran has put out any mines in the Hormuz Strait, and we have no reports of them doing so, we want them removed, IMMEDIATELY! If for any reason mines were placed, and they are not removed forthwith, the Military consequences to Iran will be at a level never seen before. If, on the other hand, they remove what may have been placed, it will be a giant step in the right direction! Additionally, we are using the same Technology and Missile capabilities deployed against Drug Traffickers to permanently eliminate any boat or ship attempting to mine the Hormuz Strait. They will be dealt with quickly and violently.”
In another post, he said: “I am pleased to report that within the last few hours, we have hit, and completely destroyed, 10 inactive mine laying boats and/or ships, with more to follow!”
In a separate post, he announced the opening of a refining facility in Texas. His post said: “America is returning to REAL ENERGY DOMINANCE! Today I am proud to announce that America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas. THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas! Thank you to our partners in India, and their largest privately held Energy Company, Reliance, for this tremendous Investment.
“It is because of our America First Agenda, streamlining Permits, and lowering Taxes, that have attracted Billions of Dollars in Deals coming back to our Nation. A new Refinery at the Port of Brownsville, will fuel U.S. Markets, strengthen our National Security, boost American Energy production, deliver Billions of Dollars in Economic impact, and will be THE CLEANEST REFINERY IN THE WORLD. It will power Global Exports, and bring THOUSANDS of long overdue Jobs and Growth to a Region that deserves it. This is what AMERICAN ENERGY DOMINANCE looks like.”