Base Oil (8cST) in Mumbai

The petroleum market is influenced by geopolitical tensions, inventory dynamics, and regional production trends. Crude prices have shown modest fluctuations, while inventory data and escalating geopolitical risks weigh heavily on market sentiment.

OPEC and the EIA have lowered their oil demand forecasts for 2024 and 2025 due to slower economic recovery in China and the global push toward clean energy. U.S. crude inventories rose by over two million barrels, reflecting slower demand growth, while support for crude oil prices remains in a limited range as futures attempt to hold steady.

Crude oil futures dropped as US inventories rose and markets await the US presidential election results. Meanwhile, OPEC+ extended output cuts amid weak demand, and Hurricane Rafael threatens Gulf oil production. US production hit a record in August, though demand forecasts have been revised downward. India’s fuel prices remain stable despite falling crude costs internationally.

Crude oil prices showed slight gains with Brent and WTI futures inching up in early trading. With geopolitical risks easing, market sentiment remains bearish, influenced by inventory levels and subdued demand from China and North America.

Crude oil futures traded higher on Wednesday morning after a sharp decline in the previous session. Brent oil futures (December): $74.47, up 0.30%. WTI futures (November): $70.83, up 0.35%. MCX crude oil futures (October): ₹5,953, up 0.51% from the previous close of ₹5,923. MCX crude oil futures (November): ₹5,931, up 0.58% from the last close of ₹5,897

Oil prices steadied in Asian trading on Wednesday as traders weighed uncertainty surrounding developments in the Middle East conflict against continued bearish fundamentals. Brent crude futures rose by 11 cents, or 0.14%, to $77.29 a barrel by 02:23 GMT. U.S. West Texas Intermediate futures rose by 3 cents to $73.60 a barrel. MCX crude oil prices opened at 6228, with a fall of 0.26%.

Oil prices fell on Wednesday and were set to snap a two-session winning streak ahead of a likely interest rate cut by the U.S. Federal Reserve, as weak macroeconomic data weighed on demand despite the potential for more violence in the Middle East.

Crude prices rebounded on Wednesday as concerns about Tropical Storm Francine disrupting oil supply outweighed worries about demand. Brent crude futures rose 39 cents, or 0.6%, to $69.58 a barrel by 0031 GMT, while U.S. crude futures were up 44 cents, or 0.7%, to $66.19 a barrel. MCX crude oil prices opened at 5611, with a 1.41% rise.

Brent crude futures for November fell 28 cents, or 0.4%, to $73.47 at 0052 GMT after dropping 4.9% in the previous session. U.S. West Texas Intermediate crude futures for October were down 31 cents, or 0.4%, to $70.03 after dropping 4.4% on Tuesday. MCX crude oil prices opened at 5900 with a fall of 0.32%.