Crude oil futures fall as IEA agrees to complete remaining oil releases

Crude oil futures experienced a decline on Friday as the International Energy Agency (IEA) committed to finishing the remaining release of about 100 million barrels of oil. Brent oil futures started the day at $105.38, decreasing by 0.51 percent, while WTI (West Texas Intermediate) crude oil futures were at $97.33, falling by 0.65 percent.

MCX (Multi Commodity Exchange) saw October crude oil futures trading at ₹9220, down by 0.60 percent, and November futures at ₹9122, also down by 0.60 percent. The IEA's Governing Board confirmed that around 330 million barrels of oil had already been released, and it agreed to expedite the completion of the remaining releases. Specific plans, including over 20 million barrels of diesel, were already in place for the timely release.

The IEA urged member countries with oil production and refining capacities to increase supply, especially diesel. They emphasized the significance of free energy trade. Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, noted that oil remains well-supported, with prices initially sliding but recovering most of the losses by the end of the trading day.

ICE Brent remained above $100 a barrel. Uncertainty in West Asia and concerns over oil flows through the Strait of Hormuz led the market to price in a substantial risk premium. For the full removal of this risk premium, a potential agreement between the US and Iran is required. The US EIA reported a notable drop in petroleum inventories during the week ending October 8, with commercial crude oil inventories decreasing by 8.6 million barrels to 415.6 million barrels, 3 percent below the five-year average.