Oil Dips as IEA Members Agree on Emergency Stocked Crude Release
Oil prices fell Friday after the International Energy Agency (IEA) agreed to accelerate the release of remaining emergency oil stocks, although concerns over Iranian supply and Russian refinery disruptions limited losses.
Brent crude futures for December delivery decreased by 0.62% to $105.26 per barrel, down from $105.92 at the previous close. US benchmark West Texas Intermediate (WTI) crude futures for November delivery also declined by 0.68% to $97.30 per barrel from $97.97.
The IEA said Thursday that member countries had agreed to accelerate the release of about 100 million barrels remaining under a collective action launched in March in response to the Strait of Hormuz crisis.
The remaining releases include more than 20 million barrels of diesel, which the agency said would be supplied as soon as possible.
About 330 million barrels have already been released under the initiative, the IEA said, adding that total volumes were expected to exceed the original pledge of 400 million barrels.
The agency also urged member countries with oil production and refining capacity to increase supplies of crude and refined products, particularly diesel.
IEA members reaffirmed their commitment to international energy security and said they were prepared to take further action to address challenges in global energy markets, building on a statement issued by G7 countries on Oct. 2.
– Russian fuel measures add to downward pressure
Prices also came under pressure after the US extended a sanctions waiver allowing Lukoil-branded service stations outside Russia to continue operating until April 24, 2027.
The US Treasury Department authorized certain transactions necessary for the stations’ operations, maintenance and potential wind-down.
Separately, Washington temporarily eased restrictions on certain transactions involving Russian diesel trade last week. The measures raised expectations of additional fuel supplies reaching global markets, adding to downward pressure on prices.
Fresh US sanctions on financial networks handling Iran’s oil revenues helped limit the decline in prices by raising concerns about potential supply disruptions.
The US Treasury Department blacklisted 16 people and 10 entities in a move aimed at restricting Iran’s access to the international financial system.
The sanctions target networks Tehran uses to bring oil revenue into the country, fueling concerns that its exports could be disrupted. Meanwhile, Ukraine’s plans to resume strikes on Russian oil refineries also supported prices.
Ukrainian President Volodymyr Zelenskyy said the attacks would resume despite a US-announced ceasefire covering energy infrastructure
Russian President Vladimir Putin said recent strikes had caused no serious damage but warned Kyiv to consider the consequences of further attacks.
Meanwhile, EIA data showing an 8.6 million-barrel drop in US crude inventories, alongside lower domestic production and imports, provided support for oil prices.
US commercial crude oil inventories decreased by about 8.6 million barrels in the week ended Oct. 9, according to data released by the Energy Information Administration (EIA) on Thursday.
EIA data showed that US crude oil production also decreased by 300,000 barrels per day (bpd) to approximately 13.68 million bpd in the week ended Oct. 9.
US crude oil imports fell by 791,000 bpd to 6.05 million bpd, and exports decreased by 195,000 bpd to 4.57 million bpd over the same period. Oil Rises as Iran-Backed Houthis, Saudi Arabia Tensions Escalate
