U.S. announces additional crude oil reserve release that lead oil prices to drop.

After the U.S. government announced it will release additional crude oil out of its Strategic Petroleum Reserve, oil prices dropped on Tuesday.

By 1005 GMT, Brent crude futures had down by 80 cents, with 0.9%, at $85.81 per barrel. Whereas U.S. crude futures had decreased by $1.05, with 1.3%, at $79.09 per barr

Crude Oil Futures: “Prices Dropped as additional Reserves Released & Inflation Pressure”

After the Energy Information Administration predicted record March output from the seven largest U.S. shale basins, supply fears also eased.

Additionally, traders will be searching for hints in the critical U.S. consumer price index (CPI) figures for Jan released on Tuesday.

“The tight oil balance that the second quarter of the year will provide should be considerably supported by recovering Chinese development.“