Oil prices rose on Thursday from a three-week low touched in the previous session after consuming nations announced a huge release of oil from emergency reserves, as worries over tight supplies still clouded the market outlook.
Brent crude futures climbed $1.42 to $102 a barrel while U.S. West Texas Intermediate (WTI) crude futures rose by $1.55 to $97 a barrel.
Both benchmarks plunged more than 5% in the previous session and hit their lowest closing levels since March 16.
Meanwhile, International Energy Agency member countries on Wednesday agreed to release 60 million barrels on top of a 180 million-barrel release announced by the United States last week to help drive down prices in a tight market following Russia’s invasion of Ukraine.
However, analysts and traders have said even with the emergency oil stocks release, supply remained tight.
“The oil release from the IEA members reflects strong political determination against Russia oil over its invasion of Ukraine, but it’s not enough to fill the actual supply shortage,” a Shanghai-based oil trader said.
