Oil prices eased Monday on reports that the Group of Seven countries, including the U.S., planned to discuss a coordinated release of crude from their strategic reserves, following a sharp surge earlier in the day as the widening war in the Middle East rattled global energy markets.
The G7 finance ministers were expected to hold a call at 8:30 a.m. EST to discuss the idea and the impact of the war, the Financial Times reported, citing people familiar with the situation.
Oil prices had earlier surged over 25%, topping $110 per barrel, their highest levels since mid-2022 when Russia’s invasion of Ukraine jolted global energy markets.
West Texas Intermediate later pulled back to around $105 per barrel while global benchmark Brent pared gains to about 16%, trading near $108.8 per barrel.
U.S. crude oil surged about 35% last week in its biggest gain in futures trading history dating back to 1983. The last time oil prices topped $100 per barrel was after Russia invaded Ukraine in 2022.
Shortly after oil blasted past $100 at the open of trading Sunday evening, President Donald Trump posted on Truth Social that a gain in “short term oil prices” was a “very small price to pay” for destroying Iran’s nuclear threat.
“Only fools would think differently!” Trump added.
Source: CNBC