November WTI futures gained 6.46% over the week to Thursday evening as a sharp fall in US crude inventories drew buyers despite efforts to bring emergency supplies to market, OilPrice.com reported. At 21:38 GMT, the contract stood at $97.58 a barrel, up $5.92 for the week, while December Brent traded around $106. The outlet said WTI attracted stronger buying after the inventory figures, whereas Brent retained its existing risk premium without extending it.
US Energy Information Administration figures cited by OilPrice.com showed crude stocks declining by 8.6 million barrels in the week ended 9 October, against expectations for a 288,000-barrel reduction. Commercial inventories were left at 415.6 million barrels, still 3% above their five-year average. Distillate holdings dropped by 2.5 million barrels to 12% below the seasonal average, although a 3.5 million-barrel rise in petrol stocks tempered the report’s overall picture of tightening supplies.
Consumption indicators also offered support. Total products supplied averaged 21.1 million barrels a day over four weeks, 2% higher than a year earlier. Petrol demand averaged 8.7 million barrels a day, while distillate demand stood at 4.0 million barrels a day, slightly below its year-earlier level.
Shipping disruption remained a counterweight to supply relief. According to OilPrice.com, a container vessel and a dry bulk carrier sank near the Strait of Hormuz on Wednesday following separate projectile strikes. Iran said it was intensifying attacks in response to the US blockade of its ports and tighter sanctions. The report also cited a renewed Ukrainian strike on a refinery in Russia’s Ryazan region.
The International Energy Agency agreed on Thursday to accelerate outstanding releases under its March collective action, including more than 20 million barrels of diesel. About 330 million barrels had already been released against pledges exceeding 400 million barrels. Spain separately announced an October release of 4.4 million barrels. European gasoil futures rose after the IEA decision, which OilPrice.com linked to expectations for more immediate supply.
Washington was also considering allowing lawful oil cargoes on previously sanctioned vessels, potentially affecting tanker availability and freight costs. The US Department of Energy said the proposed change would not assist Russian oil or petroleum product movements.