Noida, Sep 21 (APAC Media): Crude oil prices settled 1.64% lower at ₹9,123 as easing concerns over disruptions to Saudi Arabian supplies outweighed fears that an escalating Middle East conflict could further tighten global markets.
Brent crude futures for November delivery fell 1.71% to $102.12 a barrel, while West Texas Intermediate (WTI) crude futures declined 1.76% to $94.39 a barrel as of 11:41 a.m. IST.
Immediate supply concerns eased after Saudi Arabia increased crude loadings through Oman, while rising oil-product inventories in the United States, Singapore and Europe and higher Chinese fuel exports added pressure to prices.
Saudi Arabia is working to restore about half of its cross-country pipeline capacity within days following last week’s drone attack, with full operations expected to resume in around six weeks, according to market reports.
China’s refined oil-product exports rose 12.7% year-on-year in August, while jet fuel shipments reached a record high. Further easing of export controls could provide additional support to overseas supplies.
Libya also reported that crude production had returned to normal after temporary disruptions at three oilfields, adding to expectations of improved supply availability.
Europe, meanwhile, is heading for a jet fuel deficit in the fourth quarter as the US-Israel war on Iran continues to disrupt global energy flows, Reuters reported, citing consultancy Energy Aspects.
The agency said Europe is expected to face a jet fuel shortfall of about 510,000 barrels per day in the fourth quarter, compared with projected surpluses of 18,000 bpd in the United States and 419,000 bpd in Asia Pacific.
South Korea has increased jet fuel exports to Europe in an effort to bridge the supply gap. European imports of the fuel from South Korea have averaged 129,000 bpd so far in September, according to commodities intelligence firm Kpler, the highest level since October 2022.
US crude inventories fell by 640,000 barrels to 423.4 million barrels in the week ended September 11, compared with market expectations for a decline of 1.6 million barrels. Stocks at the Cushing, Oklahoma, storage hub declined by 342,000 barrels.
However, refinery crude runs fell by 256,000 bpd, while refinery utilisation eased to 96.8%. Gasoline inventories increased by 794,000 barrels to 207.7 million barrels, while distillate stocks rose by 1.6 million barrels to 107.9 million barrels. Net US crude imports declined by 1.18 million bpd.
“Higher product inventories and softer refinery runs are weighing on the market, even as crude stocks remain relatively tight,” market participants said.
The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for 2026 oil demand growth to 380,000 bpd, marking its fifth consecutive downward revision. The International Energy Agency, however, warned that declining inventories and stretched refining capacity could tighten the market if disruptions in the Middle East persist.
Technically, crude oil remains under selling pressure. Open interest rose 29.21% to 14,056 contracts as prices fell ₹109, indicating fresh short positions.
“Support is seen near ₹9,070, and a break below this level could open the way towards ₹8,918,” analysts said. “On the upside, resistance is placed near ₹9,399, while a sustained move above this level could push prices towards ₹9,576.”
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Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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