Oil Prices Plunge on EU Talks of Diesel and Crude Stock Releases
Oil prices dropped significantly on Friday due to talks over diesel and crude stock releases in Europe. Brent fell by $3.06, or 3%, to $99.25 a barrel at 1409 GMT, while West Texas Intermediate (WTI) dropped $3.95, or 4.25%, to $88.92 a barrel.
The decline comes after reports of discussions in Europe on releasing additional diesel and crude stockpiles to ease concerns over tight global energy supplies. European gasoil futures, a benchmark for diesel prices, fell about 4.3% to $1,386.75 a metric ton.
Ole Hansen, head of commodity strategy at Saxo Bank, attributed the drop to the release of fuel and crude stockpiles in response to US pressure on European nations. 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 across the Middle East and Russia.
However, Barclays raised its fourth-quarter Brent forecast by $20 a barrel to $115 and lifted its 2026 forecast to $100 a barrel. The bank attributed this increase to physical market fundamentals remaining strong, with inventories continuing to be drawn.