Oil Prices Steady Amid Middle East Supply and Demand Balancing Act
Oil prices showed stability on Tuesday, recovering from earlier losses as markets balanced rising Middle Eastern crude exports against supply risks. Brent futures dipped 29 cents to $100.03 per barrel, while US West Texas Intermediate (WTI) crude climbed 16 cents to $89.59. Analyst John Evans of PVM noted that the global benchmark Brent has struggled to maintain levels above $100 due to increased crude supply.
Vitol CEO reported that around 12 million barrels per day of crude and 2 million barrels per day of refined products have recently left the Middle East. Saudi Energy Minister Prince Abdulaziz bin Salman confirmed that oil pumped through the East-West Pipeline reached 5.8 million barrels. However, price declines were limited by concerns over potential Middle East supply disruptions, especially after attacks on Saudi airports by Yemen's Iran-backed Houthis.
The International Energy Agency is set to discuss a diesel stock release next week, addressing market confusion over the volumes Europe and the US plan to make available. The G7's agreement to release 100 million barrels of diesel and crude from emergency reserves has not specified the breakdown or participating countries. The US Energy Information Administration projected a decline in world petroleum production and demand by 2026, with a rebound expected in 2027.
In the US, analysts estimated that energy firms added 1.8 million barrels of crude to storage during the week ended October 2, marking the first three-week increase since August.