WTI crude closes down $1.68 after G7 releases 100 million barrels from reserves

InfoQuest··USGB·Read original
4▲0 ▼3Impact / 5
Summary · why it matters

West Texas Intermediate crude for November delivery closed down $1.68, or 1.84%, at $89.43 a barrel, after the G7 nations agreed on Friday, October 2, to release up to 100 million barrels of diesel and crude from strategic reserves into the market within four months, with the bulk of the diesel to be released in the first 20 days. Meanwhile, shipping data showed crude exports from the Middle East rose above pre-war levels on four of the last seven days of September, even as tankers came under attack in the Strait of Hormuz. Brent crude for December delivery closed down $1.93, or 1.89%, at $100.32 a barrel. The U.S. Department of Energy reported that crude stocks in the Strategic Petroleum Reserve fell to 283 million barrels last week, the lowest level since October 1982.

Impact on assets 3

Others▼
⛏Crude Oil WTI Futures
WTI
▼ NegativeSupplyrelevance

G7 releasing up to 100 million barrels of crude/diesel from strategic reserves adds supply, pressuring WTI lower.

⛏Heating Oil Futures
HEATOIL
▼ NegativeSupplyrelevance

The reserve release is mostly diesel, adding distillate supply that pressures heating oil prices.