Oil futures rose on Thursday from a three-week low touched in the previous session following major consuming countries said they would release large amounts of oil reserves, while fears of a tight supply still dominate market expectations.
Brent contracts rose $1.48, or 1.5 percent, to $102.55 a barrel.
And US crude contracts rose $1.26, or 1.3 percent, to $97.49 a barrel.
The two benchmarks lost more than 5% in the previous session, and recorded their lowest level at the close since March 16.
The International Energy Agency said its member states would release 120 million barrels of strategic reserves to try to calm sharp price increases. According to two informed sources, the figure will include 60 million barrels of strategic reserves in the United States. This pledge forms part of a previous US announcement of the withdrawal of 180 million barrels from the reserves.
supplies are scarce
But analysts and traders said that even with the release of oil stocks, supplies remain tight.
The Energy Agency said, on Wednesday, that its member states agreed to release 120 million barrels of oil, half of which will come from the United States, in an effort to calm crude prices following the Ukraine crisis.
Fatih Birol, the executive director of the agency, said in a tweet that the agency is moving forward with a collective withdrawal of oil stocks of 120 million barrels, including the 60 million barrels that the United States contributes in the framework of its total withdrawal from its strategic petroleum reserve.
“More details regarding the contributions will be announced soon,” he added.
Russian oil embargo
In addition, US Treasury Secretary Janet Yellen said on Wednesday that sanctions that impose a complete ban on Russian oil exports are likely to result in an “excessive increase” in world prices that will harm the United States and its allies.
Yellen told the US House of Representatives Financial Services Committee that she hopes that oil companies in the US and other countries can increase production in the next six months, tempted by higher prices, which might allow for tighter restrictions on Russian oil.