Brent crude oil futures fell by 1.1% to $96.92 per barrel on Wednesday. Additionally, West Texas Intermediate (WTI) crude oil also decreased by 1.4% to $89.18 per barrel. These two oil benchmarks had seen an increase of about one dollar per barrel in previous days.
Monthly Growth of Crude Oil
Brent oil recorded a growth of about 14% in September, marking the highest increase since July. West Texas Intermediate also experienced an increase of about 5% during this period. Sugandha Sachdeva, founder of the research firm "S S Wealth Street" based in New Delhi, stated that the resumption of oil shipments from the Gulf and the renewed exports from Saudi Arabia through the port of Yanbu, along with the increase in U.S. oil inventories, have reduced concerns about supply and lowered oil prices.
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Increase in U.S. Crude Oil Inventories
The U.S. Energy Information Administration reported that crude oil inventories in the country increased by 922,000 barrels to 427.3 million barrels in the week ending September 25. This comes as analysts in a Reuters poll had predicted a decrease of 264,000 barrels in inventories. Despite this increase, U.S. gasoline inventories fell by 1.7 million barrels, and distillate stocks (including diesel and heating oil) also faced a decrease of 2.3 million barrels.
The U.S. government, especially during Donald Trump's presidency, is still considering the possibility of banning diesel exports from the country. These remarks come as diesel prices in the U.S. reached a record $6.53 per gallon last week, and its inventory remains at a historic low.
Meanwhile, according to recent reports, OPEC Plus oil-producing countries are likely to keep their oil production targets unchanged for November at their meeting next Sunday. Currently, Middle Eastern exports in September remain about 3.2 million barrels per day lower than the February levels, making the market sensitive to any new disruptions.
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