Oil falls about 3% on talks over diesel, crude stock releases
USO•Oil prices fell about 3% and European gasoil futures dropped more than 5% as EU countries discussed releasing diesel and crude stockpiles. The proposals included 50 million barrels of diesel and 50 million barrels of crude oil.
1. Prices fall
Brent fell $2.83, or 2.77%, to $99.48 a barrel, while U.S. West Texas Intermediate dropped $3.35, or 3.61%, to $89.52. Both benchmarks were poised for weekly declines. European gasoil futures fell more than 5% to $1,377 a metric ton.
2. Stockpile proposals
EU governments discussed a French proposal for European countries to release 50 million barrels of diesel and for International Energy Agency members to release 50 million barrels of crude oil. The discussions followed U.S. pressure on European nations to release more supplies. China reportedly suspended refined fuel exports for October to preserve domestic stocks.
3. Market outlook
Saxo Bank's Ole Hansen said refined-product supply, constrained by lower refinery capacity and output across the Middle East and Russia, was the main stress in the energy market. Barclays said physical market fundamentals remained strong, with inventories drawing and prompt cargoes commanding steep premiums over forward prices. The bank raised its fourth-quarter Brent forecast by $20 to $115 a barrel and lifted its 2026 forecast to $100.
