Oil Drops $15 in 2 Hours as G7 Considers 400M Barrel Release

Key Insights:

• Oil surged above $117 before falling $15 after G7 discussed potential strategic reserve release.
• Three G7 countries, including the U.S., may support releasing 400 million barrels of oil.
• Technical charts show strong bearish momentum, with $100–$99 as next key support levels.

U.S. oil prices fell sharply on Monday, dropping about $15 per barrel in under two hours to trade below $104 per barrel. The decline followed reports that Group of Seven (G7) countries are considering releasing up to 400 million barrels of crude oil from strategic reserves.

The discussion comes amid rising oil prices caused by supply concerns linked to the conflict in the Middle East. A French government source said G7 finance ministers planned to discuss the potential release of emergency oil reserves on Monday. Reports indicate that the International Energy Agency (IEA) would join the talks.

Prices React to Reserve News

Earlier Monday, oil had surged from around $99 to above $117 per barrel. The rise was driven by supply cuts from major producers and fears of disruptions in shipping lanes connected to the expanding Middle East conflict.

After news of the G7 reserve talks, the market reversed sharply. Prices fell from $115 to about $103 in a short period. “It is unclear how much oil will be released or when,” a trader said. Another added, “The market is moving fast, but the details are still uncertain.”

How Large Could the Release Be?

Report from reuters indicate that three G7 countries, including the U.S., support the idea of releasing oil from reserves. A total of 400 million barrels could provide a noticeable increase in short-term supply, easing some pressure on prices.

The IEA noted in a newsletter that it is monitoring energy security but did not comment directly on the G7 discussions. Traders are watching how the market reacts and whether prices stabilize once more details emerge.

Market Trends and Technical Signals

Technical charts show strong downward momentum following the rapid drop. Large bearish candles suggest heavy selling, with the $106–$108 range now acting as resistance. Analysts are observing support levels around $100 and $98–$99 as potential points where prices could slow their decline.

The market has been volatile due to both geopolitical tensions and production changes. The potential G7 release adds a new factor to short-term supply expectations and trading patterns in crude oil markets.

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