Oil prices fluctuate as IEA announces reserve release
Oil prices were all over the place Monday after the International Energy Agency (IEA) announced it is releasing emergency oil reserves to tackle supply issues caused by ongoing tensions in West Asia.
Brent crude crept up to $103.95 a barrel, while US oil (WTI) dipped just below $99.
IEA to release 400 million barrels of oil
The IEA is putting 400 million barrels from global emergency reserves into play, starting with stocks from Asia and Oceania, and rolling out more in the Americas and Europe soon.
Experts say this could help for now, but unless shipping through the key Strait of Hormuz resumes, prices might stay unpredictable.
India is likely to be worst hit
India relies heavily on imported oil, so these supply disruptions are straining India's supplies and have triggered panic bookings of LPG; they could raise import bills and consumer prices.
This whole situation is a reminder of how important it is for countries like India to diversify where they get their energy from.