Ammon News - Oil prices fell further on Wednesday, as reports of the International Energy Agency proposing the largest release of oil reserves in ​its history due to potential supply disruptions from the U.S.-Israeli conflict with Iran dragged on sentiment.

Brent futures traded down 88 cents, or 1%, ‌at $86.92 a barrel by 0451 GMT. U.S. West Texas Intermediate (WTI) traded 35 cents lower, or 0.4%, at $83.1 a barrel.

U.S. crude prices leapt 5% at the market open after both contracts plunged more than 11% on Tuesday, the steepest percentage drop since 2022, a day after Trump predicted a quick end to the war. On Monday, WTI surged to more than $119 a barrel, its highest ​since June 2022.

The IEA's proposed drawdown would exceed the 182 million barrels of oil that IEA member countries put onto the market in two releases in ​2022 when Russia launched its full-scale invasion of Ukraine, the WSJ said, citing officials familiar with the matter.

A stockpile release ⁠of that size would offset 12 days of the investment bank's estimated 15.4 million barrel-per-day Gulf exports disruption, Goldman Sachs analysts said in a note.

The U.S. and ​Israel pounded Iran on Tuesday with what the Pentagon and Iranians on the ground called the most intense airstrikes of the war.

Reuters