Reports that G7 nations may release up to 400 million barrels from strategic oil reserves triggered a sharp reversal in crude prices, sending U.S. oil from nearly $120 to around $101 per barrel. This development followed severe market turmoil linked to military conflict, with Bitcoin showing signs of recovery after an earlier sell-off, climbing from an intraday low near $65,600 to trade around $67,400.
Oil prices sank as new reports indicate a potential release of as much as 400 million barrels by G7 countries. Global markets have been under serious turmoil over the past week amid the ongoing war between Iran, the U.S., and Israel.
Crude oil prices had skyrocketed earlier, reaching almost $120 per barrel. This resulted in considerable volatility in stock futures and crypto markets, which were falling as it was happening.
Members of the G7 are to discuss a joint release of oil reserves on Monday during an emergency meeting. As stated by the Kobeissi Letter, “US Oil prices are currently attempting one of their biggest reversals in history.”
U.S. oil prices fell immediately after the news broke and sank to as low as $101 per barrel within hours. The note added that prices were now up 12% on the day, erasing more than half of their daily gain.
After tanking to an intraday low of around $65,600, Bitcoin’s price is attempting a recovery, currently trading at $67,400. The cryptocurrency rose to as high as $68,000, but buyers couldn’t sustain the move.
Oil prices have significant implications across multiple markets, and crypto is no exception. Being largely considered a volatile risk-on segment, prices often react negatively to economic turmoil.
At the time of this writing, the total market capitalization stands at $2.38 trillion, up 0.2% in the past 24 hours according to CoinGecko.
