Noida, Oct 15 (APAC Media): Oil prices fell on Thursday after reports that the United States was considering easing sanctions on crude oil-carrying shadow fleets raised expectations of increased global supply, adding to pressure from concerns over weakening demand and a potential release of emergency crude reserves.
Brent crude futures fell 1.2% to $104.70 a barrel, while US West Texas Intermediate (WTI) crude futures declined 0.94% to $94.20 a barrel as of 11:25 AM IST.
Oil prices rose following reports of an attack on the headquarters of Saudi Arabia’s state-owned oil company and Iranian threats to use new tactics against shipping, heightening concerns over potential disruptions to global oil supplies.
US Energy Information Administration (EIA) data showed crude oil inventories fell by 3.2 million barrels to 424.1 million barrels in the week ended October 2, defying market expectations for a build of 1.7 million barrels. Refinery crude throughput increased by 223,000 barrels per day (bpd), while refinery utilisation rose by 0.2 percentage points to 92.7%.
However, gasoline inventories increased by 0.4 million barrels to 204.7 million barrels, while distillate stocks remained largely unchanged at 105.1 million barrels.
Separately, data from the American Petroleum Institute (API) indicated that US crude inventories fell by 11.12 million barrels in the week ended October 9, sharply contrasting with expectations of a 1.9-million-barrel build.
The unexpected drawdown came as Hurricane Isaias disrupted production along the US Gulf Coast, reportedly taking nearly two-thirds of regional output offline.
Supply-side developments in other markets also shaped sentiment, with Russian crude production rising by 65,000 barrels per day (bpd) to 8.43 million bpd in September, according to the International Energy Agency (IEA).
However, output remained 870,000 bpd below the level recorded a year earlier.
Russian crude exports rose to 5.3 million bpd, while Ukrainian strikes continued to disrupt refinery operations.
Consequently, Kazakhstan’s crude oil exports through the Caspian Pipeline Consortium (CPC) system fell to 5.2 million tonnes in September from 5.7 million tonnes in August, mainly due to scheduled maintenance.
Meanwhile, China’s crude oil imports fell 2.2% month on month to 37.10 million tonnes in September. Oil product imports declined 17.8%, while exports increased 19.1% to 7.16 million tonnes, indicating mixed demand and trade trends in the world’s largest oil-importing country.
The Organisation of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth in 2026 to 400,000 bpd from 1.4 million bpd at the beginning of the year, marking its sixth consecutive downward revision.
However, it raised its 2027 outlook, citing expectations of inventory rebuilding and deferred demand. Saudi Arabia’s crude production increased by more than 2 million bpd in September to 8.372 million bpd, according to OPEC.
Market participants also assessed the potential impact of US measures temporarily easing sanctions on Russian diesel exports to address tightening fuel supplies. Any relaxation of restrictions on Russia’s shadow fleet could reduce elevated freight costs and help moderate oil prices, although the implementation of further relief measures remained uncertain.
The IEA was expected to clarify discussions surrounding a possible additional release of 100 million barrels from emergency reserves. Member countries had previously pledged to release 400 million barrels following the US-Iran war.
The agency also warned that diesel markets could remain tight into 2027 because of crude supply disruptions and refinery outages, while forecasting global oil demand to decline by 2.6.1 million bpd in 2026 amid higher prices.
Technically, crude oil is witnessing fresh buying interest, with open interest rising 13.69% to 7,439 contracts alongside a price increase of Rs 142.1. Support is placed at Rs 8,915, followed by Rs 8,805, while resistance stands at Rs 9,100. A sustained move above Rs 9,100 could lift prices towards Rs 9,176.
-ENDS–
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.
Also Read:
