The futures price of Brent crude oil in today's trading fell by 1.1% to $96.92 per barrel. Additionally, West Texas Intermediate (WTI) crude oil also decreased by 1.4% to $89.18 per barrel.
Oil price fluctuations in recent weeks
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. Meanwhile, West Texas Intermediate also experienced a monthly price increase of about 5%.
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Sugandha Sachdeva, founder of the research company "SS Wealth Street" based in New Delhi, stated that with the resumption of oil shipments from the Gulf region, the restart of Saudi exports through the port of Yanbu, and the increase in oil inventories in the United States, concerns about supply have diminished, and the short-term trend of oil prices appears to be downward.
Increase in U.S. crude oil inventories and its impact on the market
The U.S. Energy Information Administration announced on Wednesday that the country’s crude oil inventories rose by 922,000 barrels to 427.3 million barrels for the week ending September 25. This increase in inventories was contrary to analysts' expectations, who anticipated a decrease of 264,000 barrels.
The status of fuel inventories also indicates a tightening supply in the market. U.S. gasoline stocks decreased by 1.7 million barrels, and distillate stocks (including diesel and heating oil) also fell by 2.3 million barrels. This data comes as Donald Trump, the President of the United States, announced on Wednesday that he is still considering a potential ban on diesel exports from the country.
The significance of this issue is heightened as diesel prices in the U.S. reached a record $6.53 per gallon last week, and its inventory levels remain at historic lows.
Given the current state of the oil market and price fluctuations, OPEC+ oil-producing countries are likely to maintain their oil production targets for November at next Sunday’s meeting. This meeting could have a significant impact on global oil prices.
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