The futures price of Brent crude oil decreased by 1.1%, reaching $96.92 per barrel, while West Texas Intermediate (WTI) crude oil in the U.S. also fell by 1.4% to $89.18 per barrel.
Price Trends and Influencing Factors
Both oil indices saw an increase of about one dollar per barrel on Wednesday. Brent oil recorded a growth of about 14% in September, marking the highest increase since July, while West Texas Intermediate also had a monthly price increase of about 5%.
Read more: Decrease in activity in the oil and petrochemical market due to profit-taking
Swagandha Sachdeva, founder of the research firm "SS Wealth Street" based in New Delhi, attributed the current state of the oil market to the resumption of oil shipments from the Gulf region, the restart of Saudi exports through the Yanbu port, and an increase in U.S. reserves. These factors have alleviated concerns about supply and predict a downward trend in short-term oil prices.
Export and Oil Reserve Status
Reuters reported that Saudi Arabia has resumed loading tankers from the Yanbu port following the restart of operations on the "East-West" pipeline. However, regional flows remain below pre-U.S. military intervention and Israeli regime levels in Iran. Data from Kpler indicated that Middle Eastern exports in September were still about 3.2 million barrels per day lower than February levels, making the market sensitive to any new disruptions.
The U.S. Energy Information Administration announced that the country's crude oil reserves increased by 922,000 barrels to 427.3 million barrels in the week ending September 25, contrary to analysts' expectations of a decrease of 264,000 barrels in a Reuters survey. Additionally, U.S. gasoline inventories fell by 1.7 million barrels, and distillate reserves (including diesel and heating oil) decreased by 2.3 million barrels.
Meanwhile, Donald Trump, the President of the United States, announced on Wednesday that he is still considering a potential ban on U.S. diesel exports. These remarks come as the White House had previously denied reports about preparing a plan for a blanket 90-day export ban.
The price of diesel in the U.S. reached a record $6.53 per gallon last week, and its inventory remains at historically low levels.
Reports indicate that OPEC Plus oil-producing countries are likely to keep their oil production targets unchanged at the meeting next Sunday.
Read more: Brent oil price drops to $96 and the return of oil flow from the Gulf · Brent oil above $100 and OPEC Plus production forecast
