Oil prices fell on Wednesday, March 11, after the Wall Street Journal reported that the International Energy Agency had proposed the largest draw from strategic oil reserves in its history to lower crude prices, which have risen amid the ongoing conflict in Iran.
In trading, Brent crude futures fell by about 0.7% to $87.21 a barrel, while US crude futures declined by less than 0.1% to $83.32 a barrel.
The newspaper said the withdrawal would exceed the 182 million barrels of oil that the agency's member states put on the market in two phases in 2022 when Russia launched its invasion of Ukraine.
According to the report, the International Energy Agency held an extraordinary meeting of its member states on Tuesday, and a decision on the proposal is expected today, Wednesday. The newspaper added that the proposal will be adopted if no country objects, but an objection from a single country could delay the plan.
Oil prices rose to their highest level in nearly four years on Monday, but fell yesterday after US President Donald Trump predicted the war in the Middle East was nearing its end.
Iranian Foreign Minister Abbas Araqchi accuses US officials of spreading disinformation to manipulate the market.
Araghchi writes on his X platform account: US officials are spreading misinformation to manipulate the markets. This will not protect them from the inflation tsunami they imposed on Americans.
The G7 energy ministers did not agree yesterday to draw on strategic oil reserves, and merely asked the International Energy Agency to assess the situation before taking any action.
In a separate development, a Reuters report stated that the US Navy confirmed in meetings with shipping and oil companies that escorting oil tankers passing through the Strait of Hormuz would only be possible after the threat level decreased.
