Yesterday the IEA (International Energy Agency) announced their 28 member group will be proportionately releasing 2 million barrels of oil per day, until a total of 60 million barrels hit the markets.
The closest month contract of West Texas Intermediate crude, a good benchmark for oil prices, dropped rather dramatically, bottoming out mid day at $89.69 per barrel from a day’s high of 94.33 or near a 5% drop.
Things that make you go hmmm….
According to various estimates, current world consumption is in the 85-95 million barrels of oil per day.
While the big drop in oil prices is nice for our summer travel plans, and will help at the pump, it might also exemplify the void of traders and professional investors at their posts in the summer days.
We are certainly happy to accept the extra bucks in our pockets from the reprieve in prices, however the movement may have been rather extreme given the magnitude of the announcement.
Have a Great Day and Super Weekend !