EU Talks Send Oil Prices Down Over 2%
Oil prices fell more than 2% on Friday after reports of talks over additional diesel and crude stock releases. Brent crude dropped $2.57, or 2.51%, to $99.74 a barrel at 1035 GMT, while West Texas Intermediate (WTI) fell $3.53, or 3.8%, to $89.34 a barrel.
European gasoil futures, a benchmark for diesel prices, fell about 5% to $1,380.5 a metric ton. The discussion in the European Union over releasing additional diesel stockpiles and crude oil is seen as an effort to ease concerns over tight global energy supplies.
Ole Hansen, head of commodity strategy at Saxo Bank, said the whole energy complex trades lower, led by gasoil and ULSD, as EU countries discuss releasing fuel and crude stockpiles. He noted that the main stress in the energy market is no longer crude availability but rather refined product supply, constrained by reduced refinery capacity and output.
Hamad Hussain, senior climate and commodities economist at Capital Economics, said another release of oil stocks could help tip the overall market back into a slight surplus if recent pick-ups in flows from the Middle East are sustained. Barclays raised its fourth-quarter Brent forecast to $115 and lifted its 2026 forecast to $100 a barrel.