A surprise announcement by the International Energy Agency pushed down oil futures, Bloomberg reports.
The IEA said Thursday it will release 60 million barrels of oil from its emergency stockpile to reduce crude prices and support the global economy. Prices for the energy commodity slipped to the lowest values in 24 months amidst concerns about oversupply.
"We think the IEA did the right thing, since we believe that world economies were on the verge of a dangerous energy-induced slowdown, if not an outright recession," Edward Meir of MF Global in New York told the Associated Press. "Breaking the back of this price spiral was therefore important in so far as some of the recent inflationary gains will now likely be reversed – assuming energy prices continue trending lower – while more importantly, central banks in key emerging markets will be less inclined to raise rates."
At 10:48 a.m. on Friday, crude oil futures were down 1.12 percent, a $1.20 slip to $106.06
The IEA decision comes on the heels of Organization of the Petroleum Exporting Countries resolving against increasing product supplies earlier this month at meetings in Austria.
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