Oil posts $7 weekly loss with more countries ready to release emergency reserves

Oil prices posted a $7 per barrel weekly loss during the week ending April 8 over easing supply worries with the International Energy Agency (IEA) announcing that additional barrels will be released from emergency oil stocks in response to tight global supply.

International benchmark Brent crude closed at $107.53 per barrel on Monday and American benchmark West Texas Intermediate (WTI) traded at $103.28 per barrel at the beginning of the week.

The prospect of fresh sanctions on Russia pushed oil prices higher on Tuesday. Sanctions, which may include Russian energy export bans, put upward pressure on prices, with EU countries already expressing their unwillingness to import Russian hydrocarbon resources.

Brent hit $109.90 and WTI increased to $105.59 during the day.

On Wednesday, prices dropped after the IEA announced it is 'moving ahead with a collective oil stock release of 120 million barrels, including 60 million barrels contributed by the US as part of its overall draw from its Strategic Petroleum Reserve.'

Brent ended the trading day at $101.07 while WTI closed at $96.23 on Wednesday.

Oil prices continued their downward movement on Thursday after the Energy Information Administration reported a rise in the US commercial crude oil inventory.

US oil stocks increased by 2.4 million barrels to 412.4 million barrels, during the week ending April 1, against the expectation of a fall of 1.6 million barrels.

Brent crude traded at $100.56 per barrel at 1135 GMT on Friday, marking a $7 drop from Monday's closing of $107.53.

WTI traded at $96.36 per barrel at the same time, also displaying a $7 fall from Monday's $103.28 closing.

The drop in prices came after Japan announced its plan to release at least 15 million barrels from its state reserves, along with Korea which said it would discharge 7.23 million barrels.

Around 240 million barrels in emergency oil stocks, the equivalent of well over 1 million barrels per day, will be released on the global market over a six-month period.