Oil extends losses as U.S. mulls strategic reserve sales | Reuters

Oil extends losses as U.S. mulls strategic reserve sales | Reuters

Oil prices fell sharply on Thursday, extending losses from the previous session, as the United States said it was considering selling oil from its strategic reserves and as Russia said it was ready to stabilise the natural gas market.

Brent crude prices fell $1.24, or 1.5%, to $79.84 a barrel by 0918 GMT, after falling to a session low of $79.08. WTI crude futures fell $1.69, or 2.2%, to $75.74 a barrel, having hit a session low of $74.96.

Both contracts fell about 2% on Wednesday.

"The crude market might be less tight should the United States tap the strategic crude reserves and if Russia manages to send more natural gas to Europe, this might result in less substitution from natural gas to crude," said UBS analyst Giovanni Staunovo.