Oil prices drop as US plans market intervention and waivers
Oil prices fell as the U.S. weighed futures market intervention to curb costs. Washington also issued waivers for Indian refiners to buy Russian crude.
Oil prices retreated for the first time in six days as the United States signaled potential intervention in the futures market to curb a sharp rally. The move comes as Washington attempts to mitigate the impact of rising energy costs following the outbreak of a military conflict in the Middle East. Brent Crude Oil futures fell $1.14, or 1.33%, to $84.27 per barrel, while West Texas Intermediate Crude Oil dropped $1.46, or 1.8%, to $79.55 per barrel.
The price decline follows a period of intense volatility triggered by a military conflict involving Israel and Iran that began on February 28. The hostilities have severely disrupted the Strait of Hormuz, a critical maritime chokepoint that facilitates the movement of approximately one-fifth of the world's daily oil supply. The resulting instability has shuttered refineries and liquefied natural gas plants across the region.
