Brent Crude Drops Over 1% To $97 Amid Indications Of West Asia Supply Recovery
Crude oil futures declined on Thursday as improving supplies from West Asia eased concerns over disruptions. Brent and WTI fell more than 1%, while MCX crude also traded lower. Higher US crude inventories added pressure, although gasoline and distillate stocks declined. Natural gas prices also edged lower during early trading
Crude oil futures declined on Thursday morning as signs of improving supplies from West Asia eased some concerns over disruptions to global energy markets.
At 10.30 am, Brent Crude was trading at $96.94 a barrel, down 1.11%, while West Texas Intermediate (WTI) crude fell 1.38% to $89.17 a barrel. On the Multi Commodity Exchange (MCX), October crude futures stood at ₹8,580, down 1.76% from the previous close of ₹8,734. November contracts declined 1.65% to ₹8,429.
West Asia supplies show recovery
Market reports said crude supplies from West Asia rose to 16.328 million barrels per day in September, the highest level since the conflict began in February.
Saudi Arabia also resumed crude loadings from the Red Sea port of Yanbu on Tuesday after operations on the East-West pipeline were restored. Reports also indicated that Iran had received a response from the US regarding Tehran's proposal to reopen the Strait of Hormuz.
Developments in the US also influenced market sentiment. According to the Energy Information Administration (EIA), commercial crude inventories increased by 0.9 million barrels to 427.3 million barrels in the week ended September 25. The stockpile was 2% above the five-year average.
US fuel inventories remain mixed
While crude inventories increased, US gasoline stocks fell by 1.7 million barrels and were 7% below the five-year average. Distillate inventories declined by 2.3 million barrels and stood 14% below the five-year average.
Total petroleum products supplied in the US averaged 20.8 million barrels per day over the past four weeks, up 2.1% from a year earlier. Average gasoline demand increased 0.3% to 8.7 million barrels per day, while distillate demand rose 5.2% to 3.8 million barrels per day. Jet fuel product supplied increased 6.5% year on year.
Elsewhere, October natural gas futures on MCX fell 1.03% to ₹287.30. On NCDEX, October turmeric futures gained 0.66% to ₹21,380, while guargum futures declined 0.48% to ₹12,755.
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