 SAN FRANCISCO (MarketWatch) — Crude futures slumped Thursday after the U.S. and other members of the International Energy Agency said they will release 60 million barrels of oil into world markets in the coming month to counter lost production in Libya. PRICE IMPACT UNCERTAIN 
 
 Oil prices traded $7.07 a barrel lower for benchmark Brent crude at $107.14 and U.S. crude fell $4.68 a barrel to $91.73 a barrel. The United States will provide half the volumes from its huge 727-million barrel crude reserve, about 1.5 days of U.S. consumption, with Europe supplying 30 pct in crude and refined products and the rest from Pacific OECD nations. This is the third time in the IEA’s history that its members have decided to release stocks, the latest time being the aftermath of hurricanes Rita and Katrina in 2005. “We are taking this action in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery,” U.S. Energy Secretary Steven Chu said in a statement. The 28-member International Energy Agency said it would release 60 million barrels a day over an initial 30 days to fill the gap left by the disruption to Libya's output. Libya was likely to remain off the market for the rest of 2011, it said. "The market is not short of supply.
– The International Energy Agency will release 60 million barrels of oil over the next month, in a bid to “offset the Libyan disruption,” the group announced today. The oil will come from the strategic reserves of the IEA’s 28 member nations, and will be portioned out at a rate of 2 million barrels per day, Reuters reports. It’s the third time since its inception during the ‘70s oil crisis that the IEA has moved to goose the supply, and the executive director says he expects it to ensure “a soft landing for the world economy.” Oil prices fell 5.5% after the announcement, to $90.21 a barrel, reports MarketWatch.