Noida, Oct 1 (APAC Media): Crude oil prices declined 1% on Thursday as stalled US-Iran diplomatic talks weighed on sentiment, while tight fuel markets and a gradual recovery in Middle East crude supplies kept costs volatile.
Brent crude futures for November delivery declined 1.11% to $96.96 a barrel, while West Texas Intermediate (WTI) contracts fell 1.8% to $89.19 a barrel as of 10:22 AM IST.
The spread between Brent and WTI widened to its highest level in four months as markets assessed the possibility of US restrictions on diesel exports. Such curbs could increase domestic fuel availability and encourage refiners to reduce crude processing.
Qatar said it hoped diplomatic efforts between Tehran and Washington could lead to a breakthrough.
However, US President Donald Trump denied reports that he was considering sanctions relief and the release of frozen Iranian funds in exchange for Iranian nuclear commitments.
Saudi Arabia also resumed oil tanker loadings from Yanbu after restarting its East-West Pipeline, indicating a gradual recovery in regional crude flows.
Goldman Sachs estimated Gulf oil exports had recovered to 23.4 million barrels per day over the past week, broadly in line with the 2025 average. JPMorgan, however, put the 10-day average at 20.51 million bpd, equivalent to 90% of 2025 levels.
US crude inventories rose by 922,000 barrels to 427.3 million barrels in the week ended September 25, compared with market expectations for a 264,000-barrel draw. Inventories at the Cushing storage hub increased by 553,000 barrels.
Refinery crude runs declined by 554,000 bpd, while refinery utilisation fell to 92.5%. Gasoline inventories declined by 1.7 million barrels, and distillate stocks declined by 2.3 million barrels, helping support diesel futures, which climbed 4.5% to $5.1175 per gallon.
Meanwhile, OPEC cut its forecast for global oil demand growth in 2026 to 380,000 bpd, marking its fifth consecutive downward revision. The International Energy Agency warned that prolonged disruptions in the Middle East and shrinking inventory buffers could further tighten global oil markets.
Separately, UK Prime Minister Andy Burnham has said there are “strong indications” that Iran could have been involved in an alleged security incident at RAF Fairford, a military base used by the United States. Iran has firmly denied any involvement.
Speaking to the BBC on Wednesday, Burnham said the investigation into the suspected plot was still ongoing. Five British men in their 20s were arrested near the base on Sunday on suspicion of terrorism and explosives-related offences, but all five were released on bail the following day.
Burnham said authorities were continuing to investigate the incident, describing it as a “complex and serious” case. He added that British officials were working closely with their US counterparts as the investigation continues.
Technically, crude oil remains under short covering, with open interest falling 10.99% to 11,538 as prices rose ₹59. Support is placed at ₹8,570, followed by ₹8,386, while resistance is seen at ₹8,871 and ₹9,006.
–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.
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