With oil reversing much of the overnight losses as we neared the start of US cash open trading, futures slumped and it felt like we were back to square one.

That's when the jawboning out of the G7 members - many of whom are already at their breaking point in terms of soaring input costs - decided to double down on the jawboning rhetoric from yesterday - and hinted strongly that an SPR release could be imminent.

The narrative peaked just around 10:20am ET, when the head of the IEA, Fatih Birol, said that after the IEA hosted a G7 Energy Ministers Meeting, chaired by Minister Roland Lescure of France, on the current oil & gas market situation, tonight there would be an "extraordinary meeting of IEA Member governments later today to assess market conditions."

Today@IEAhosted a G7 Energy Ministers Meeting, chaired by Minister Roland Lescure of France, on the current oil & gas market situationWe will hold an extraordinary meeting of IEA Member governments later today to assess market conditionsMy statement:https://t.co/ViR4Zc4Mhvpic.twitter.com/TYlt2Aj89E

Birol also attached the following peak jawboning statement:

In oil markets, conditions have deteriorated in recent days. In addition to the challenges of transit through the Strait of Hormuz, a substantial amount of oil production has been curtailed. This is creating significant and growing risks for the market. We discussed all the available options, including making IEA emergency oil stocks available to the market. IEA Member countries currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government obligation.

Given conditions in oil markets, I have convened an extraordinary meeting of IEA Member governments, which will take place later today to assess the current security of supply and market conditions to inform a subsequent decision on whether to make emergency stocks of IEA countries available to the market.

As well as IEA Members, I am also in close contact about the situation with energy ministers from key energy producers and consumers around the world.

And in a mirror image of a similar verbal intervention from yesterday (see "G-7 Leaders Reject SPR Release Plan, But 'Stand Ready' After Initial Jawbone Efforts Fade"), oil immediately tumbled erasing all gains, and sliding to overnight lows, on expectations that this time the IEA/G7's jawboning will lead to something more than just promises.

And as oil falls, stocks rise...

Source: ZeroHedge News