Oil ETF Drops 8% but Holds $91 Support After Inventory Decline
US commercial crude stocks excluding the Strategic Petroleum Reserve fell by 913,000 barrels as exports rose, tightening supply ahead of Nigeria boosting output to 1.8 million barrels per day. Oil fund prices plunged 8% on renewed US-Iran peace talks but held near $91 support as buyers stepped in.
1. US Crude Stocks Fall Sharply
US commercial crude inventories excluding the Strategic Petroleum Reserve declined by 913,000 barrels last week as rising exports strained available supply. This unexpected drawdown reflects stronger overseas demand and tightening market conditions ahead of a planned increase in Nigeria’s production.
2. Nigeria Boosts Output to 1.8 Million Barrels
Nigeria has raised its daily oil production to 1.8 million barrels per day, enhancing fiscal space and adding fresh supply to the global market. The uptick follows ongoing reforms aimed at stabilizing the country’s oil industry and shoring up government revenue.
3. Peace Talks Spark 8% Price Volatility
Crude benchmarks plunged over 8% after US-Iran peace negotiations moved to Pakistan, injecting fresh volatility into the oil complex. Despite the drop, prices found support near the $91 level as traders balanced geopolitical hope against longstanding regional tensions.
4. Buyers Emerge on Price Dips
Following the steep selloff, buyers stepped in around the $91 support threshold, stabilizing ETF prices and suggesting underlying demand resilience. This rebound highlights investor appetite for exposure to oil market swings and the potential for renewed upside if geopolitical headwinds ease.