Expert Warns Oil Reserve Release May Not Lower Prices Amid G7 Decision

The market is currently anticipating the G7's decision on the International Energy Agency's proposal to release a record amount of strategic reserves, causing a rise in crude oil futures. According to Jin10, FxPro analyst Alex Kuptsikevich has expressed skepticism about the effectiveness of releasing oil reserves in reducing prices. He noted that after the release in 2022, oil prices increased as traders interpreted it as a signal of market vulnerability. Conversely, he mentioned that during the 1991 attack on Iraq, the U.S. released reserves, which did lead to a decrease in oil prices. Kuptsikevich emphasized that the oil market is focused on two main issues: the speed and manner in which the Middle East conflict concludes.