U.S. Crude Oil Inventories Decline Amid Middle East Tensions and ECB Rate Speculations
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Crude oil futures traded higher on Thursday morning as an industry report showed a decrease in U.S. inventories for the week ending October 11. December Brent oil futures were at $74.37, up by 0.20%. November WTI (West Texas Intermediate) crude oil futures stood at $70.59, up by 0.28%. On the Multi Commodity Exchange (MCX), October crude oil futures were trading at ₹5,933, rising 0.17% from the previous close of ₹5,923. November MCX futures were at ₹5,910, increasing by 0.14% from the last close of ₹5,902.
Petroleum Price
- Crude oil futures traded higher on Thursday morning as an industry report showed a decrease in U.S. inventories for the week ending October 11.
- December Brent oil futures were at $74.37, up by 0.20%.
- November WTI (West Texas Intermediate) crude oil futures stood at $70.59, up by 0.28%.
- On the Multi Commodity Exchange (MCX), October crude oil futures were trading at ₹5,933, rising 0.17% from the previous close of ₹5,923.
- November MCX futures were at ₹5,910, increasing by 0.14% from the previous close of ₹5,902.
Petroleum Demand and Supply
- The American Petroleum Institute (API) reported that U.S. crude oil inventories declined by 1.5 million barrels for the week ending October 11. This contrasts with the previous week’s 10.9 million-barrel increase, defying market expectations of another rise. The drop in inventories indicates rising demand for crude in the U.S., one of the world's largest oil consumers.
- The market now awaits official data from the U.S. Energy Information Administration (EIA), expected later on Thursday, to confirm the inventory changes and provide more clarity.
- Crude oil prices also found support from ongoing tensions in the Middle East. Reports indicated that Israel intensified airstrikes on Lebanon on Wednesday, sparking fears that escalating conflict in the region could disrupt oil supplies.
- Market participants are also watching the European Central Bank (ECB) for its decision on interest rates. The market anticipates a rate cut, which could stimulate economic activity in the Eurozone, potentially increasing demand for commodities, including crude oil.
Petroleum News
- Oil prices rebounded in early Asian trading on Thursday, recovering from steep losses in the previous two sessions. Industry data showing an unexpected decline in U.S. oil stockpiles last week provided a boost.
- Despite the rebound, crude prices remain down 6-7% this week. Both OPEC and the International Energy Agency (IEA) have downgraded their demand forecasts for 2024 and 2025, adding bearish pressure.
- Risk premiums have eased as concerns about potential supply disruptions from an Israeli retaliation against Iran have subsided, though the Middle East remains volatile.
- Brent crude prices rose 45 cents, or 0.6%, to $74.67 per barrel.
- WTI futures climbed 45 cents, or 0.6%, to $70.84 per barrel.
- Both benchmarks fell to their lowest levels since October 2 during Wednesday’s session, marking a second consecutive day of declines.
Expert Opinion
Oil prices have declined as risk premiums eased, with reduced fears of an Israeli retaliation against Iran disrupting supply. However, uncertainties persist in the Middle East. Additionally, the ECB is expected to lower interest rates on Thursday—marking the first consecutive rate cuts in 13 years—as it shifts focus from curbing inflation to supporting economic growth.
Daily Market Report
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