By FXEmpire.com
CRUDE OIL FINALLY FALLS ON INVENTORY AND STRATEGIC RESERVES RUMORS
France’s government says it is considering releasing oil from its strategic reserves as part of a US-led effort to increase supply to bring down high prices.
Industry Minister Eric Besson said “the United States asked, and France welcomed this hypothesis.”
A report of a possible coordinated oil release by France, the United States and the United Kingdom from strategic reserves became 
more a reality today. French Energy Minister Eric Besson told reporters in Paris that the United States has asked for coordinated move between America, Britain and France for an emergency release of oil stocks, according to the Financial Times.
Government spokeswoman Valerie Pecresse said France is waiting for recommendations from the International Energy Agency before tapping its oil reserves. She said the French government is also pressing oil-producing countries to release more oil on the markets to ease prices.
Like in the United States, high petrol prices have been an issue in the campaign for France’s presidential elections.
Crude prices have jumped from $75 in October to near $107 a barrel on Wednesday.
Crude Oil is trading at 105.38 down -1.95. The black gold suffered two direct hits today, the possible release of strategic reserves became more likely and by a surprise inventory report, that showed an inventory increase more than double the size of analyst expectations.
The Energy Information Administration reported an increase of 7.1 million barrels of crude in the week ended March 23. That surpassed expectations for an increase of about 2.75 million barrels, according to analysts polled by Platts.
The EIA also said gasoline supplies declined 3.5 million barrels on the week, while stockpiles of distillates, which include heating oil, were down 700,000 barrels.
The analysts surveyed by Platts expected gasoline supplies to decline 1.5 million barrels, and distillates inventories to be down 1 million barrels.
Originally posted here
