Oil rose in New York, reversing yesterday’s plunge, amid concern producers including Saudi Arabia may reduce output in response to the International Energy Agency’s move to release oil stockpiles.
Crude advanced as much as 1.5 percent, after falling 4.6 percent yesterday. The International Energy Agency agreed to release 60 million barrels to buyers starting next week. Oil stockpiles among the 28 member-countries of the IEA declined by 340,000 barrels a day during the first quarter of this year, the Agency said in its monthly Oil Market Report on June 16.
“Once the temporary stock release is over, the flow of Saudi Arabian crude could dry up, tightening up balances by year-end and into 2012,” Barclays Plc analysts including London-based Paul Horsnell wrote in a report today.
Crude for August delivery added 55 cents, or 0.6 percent, to $91.57 on the New York Mercantile Exchange as of 9:42 a.m. London time. Brent crude for August was at $106.81 a barrel, down 0.4 percent, on the ICE Futures Europe exchange in London.