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Oil Drops as Market Faces Strategic Release and Hawkish Fed

  • U.S. monetary policy, virus-hit China weigh on demand
  • Brent briefly trades below $100 for first time since March 17
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Oil Demand Will Hold Up Quite Well: UBS’s Schnider
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Oil fell for a third session as hawkish signals from the U.S. Federal Reserve raised the prospect of restrained economic growth while millions of barrels of crude from strategic reserves are released into the market. 

West Texas Intermediate edged lower settling near $96 a barrel Thursday. Brent briefly dropped below $100 for the first time since March 17. While still prone to sharp intraday swings, prices have come off following the International Energy Agency’s announcement that U.S. allies will deploy 60 million barrels from stockpiles. U.S. President Joe Biden’s administration previously announced a release of 180 million barrels from its own reserves.