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Oil prices plummet: Relief for UK motorists as cost for crude crashes to $103 a barrel


Brent futures were down 45 cents, or 0.4 percent, at $108.33 a barrel, while US West Texas Intermediate futures were down 69 cents, or 0.7 percent, at $103.56 a barrel at 0354 GMT.

It comes as the United States has vowed to release more of its oil supplies, something that has helped reverse the rise in oil prices seen earlier in the week.

As a result, oil stocks in the US rose by more than 9 million barrels last week as investor confidence grew that supply issues particularly in the US can be overcome.

However, despite the positive picture in the US there are still global concerns about supply.

Since the end of coronavirus restrictions in much of the world demand for oil has rapidly increased as travel and business has largely returned to something approaching pre-pandemic levels.

Supply has been unable to match demand partially because of the massive disruption to global supply chains during the pandemic.

Oil producing countries, particularly in Africa and the Middle East, for the most part have been unable or unwilling to produce enough oil to match increasing global demand.

The Russian invasion of Ukraine spooked investors concerned about severe disruption to supply causing oil prices to rise to $140 a barrel at one point. 

READ MORE: Nurse punches and kicks elderly dementia patient before fleeing UK

He said: “Demand growth is starting to moderate and the picture for the latter half of the year is looking increasingly bleak.

“And, even a continuing sabre-rattling will be enough to keep the risk premium alive.”



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