Oil slides on release of strategic reserves

Oil prices dropped by more than $2 a barrel on Monday after a second straight weekly decline on plans to release record volumes of crude and oil products from strategic stocks and on continuing coronavirus lockdowns in China.

Brent crude for June delivery was down $2.08, or 2 per cent, at $100.70 a barrel by 0940 GMT. US West Texas Intermediate crude lost $2.19, or 2.2 per cent, to $96.07.

Bank of America maintained its forecast for Brent crude to average $102 a barrel for 2022-23, but it cut its summer spike price to $120. Swiss investment bank UBS also lowered its June Brent forecast.

"The release of strategic government oil reserves should ease some market tightness over the coming months," said UBS analyst Giovanni Staunovo.