Oil price drops more than 2% on talks over diesel, crude stock releases

On Friday, oil prices plunged by over 2% and European gasoil futures slumped by around 5%, driven by reports of potential diesel and crude stock releases to alleviate tight global energy supplies. Brent crude fell $2.57, or 2.51%, to $99.74 per barrel, while West Texas Intermediate dropped $3.53, or 3.8%, to $89.34 per barrel. European gasoil futures also experienced a sharp decline of about 5% to $1,380.5 per metric ton.

The energy sector as a whole traded lower, with gasoil and ULSD leading the decline. This drop came as European nations discussed releasing additional diesel stockpiles, a move influenced by US pressure to release more supplies and reduce surging fuel prices. The main concern in the energy market is now refined product supply, constrained by reduced refinery capacity and output in the Middle East and Russia.

Despite this, Barclays raised its fourth-quarter Brent forecast by $20 a barrel to $115 and its 2026 forecast to $100 a barrel.