Oil falls as U.S., UK plan oil reserve release

Posted By on March 16, 2012

(Reuters) – Oil prices fell as much as $3 a barrel on Thursday after Reuters quoted two UK sources as saying Britain had agreed to cooperate with the United States in releasing strategic oil reserves later this year.

Brent oil fell more than $3 a barrel following the report, later paring losses to $1.72 a barrel and trading at $123.25 by 12:06 p.m. EDT (1606 GMT). U.S. crude reversed earlier gains and fell more than 56 cents a barrel.

A formal request from the United States to the UK to join forces in a release of oil from government-controlled reserves is expected “shortly”, one source said. It was discussed at a meeting on Wednesday in Washington between President Baorack Obama and Prime Minister David Cameron. [full story…]