Key Points
- Both oil benchmarks fell in early Asian trading on Friday, with Brent at $105.51 and US crude at $97.43.
- Brent crude had settled at $105.92 a barrel on Thursday, while US crude climbed 3.03 per cent to $97.97.
- The International Energy Agency plans to accelerate the release of about 100 million barrels of emergency stocks, including more than 20 million barrels of diesel.
ISLAMABAD: Oil prices edged lower in early Asian trading on Friday as plans to release emergency supplies and possible easing of US tanker restrictions countered concerns over disrupted shipments and persistent security risks in the Middle East.
Brent crude futures fell 41 cents, or 0.39 per cent, to $105.51 a barrel by 0012 GMT, while US West Texas Intermediate (WTI) crude futures declined 54 cents, or 0.55 per cent, to $97.43.
The early losses followed a mixed session on Thursday, when Brent settled 14 cents lower at $105.92, while WTI gained $2.88, or 3.03 per cent, to close at $97.97.
The contrasting moves reflected competing pressures: concerns over oil and refined fuel supply continue to support prices. However, supply-increasing measures are limiting further gains.
The International Energy Agency (IEA) said on Thursday that its member countries would accelerate the release of approximately 100 million barrels of emergency oil stocks.
These supplies are still outstanding under a collective action launched in March.
Around 330 million barrels have already been released, and the total supply pledged is expected to exceed the original 400 million barrels.
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The remaining releases include more than 20 million barrels of diesel to be made available as soon as possible.
The agency also urged members with oil production and refining capacity to increase supplies, particularly of diesel.
However, the IEA said oil markets remained tight, especially for diesel, underscoring the difficulty of easing shortages through emergency reserves alone.
US inventory draw supports crude
Fresh US inventory figures supported oil prices during Thursday’s trading session.
The US Energy Information Administration (EIA) reported that commercial crude stocks fell by 8.6 million barrels to 415.6 million barrels in the week ended October 9, leaving inventories about 3 per cent below their five-year seasonal average.
The market fell more than expected, with lower domestic production and imports contributing to the drawdown.
US crude production fell by 300,000 barrels a day to 13.7 million barrels a day, while imports declined by 791,000 barrels a day to six million barrels a day.
Diesel and other distillate inventories also fell by 2.5 million barrels, while gasoline stocks increased by 3.5 million barrels.
The figures highlighted continued pressure on transport and industrial fuels, even as gasoline inventories rose.
Shipping risk: key concern
The market is also watching for possible changes to US restrictions on oil tankers associated with the so-called shadow fleet, which transports crude and petroleum products from countries facing sanctions.
At the same time, security risks around the Strait of Hormuz continue to threaten a major route for international energy shipments.
Any prolonged disruption could restrict crude oil and refined products, keeping prices elevated despite emergency stock releases.
The outlook, therefore, depends on two competing developments: whether additional supplies and changes to tanker restrictions can ease market tightness, and whether security threats further disrupt oil shipments.
Until supply conditions improve more decisively, lower prices may prove difficult to sustain.
Oil swings in 2026
Oil prices swung sharply throughout 2026 after the US-Iran war began on February 28.
Brent crude rose above $100 a barrel soon after hostilities began, reaching $126.41 in late April before retreating as Gulf shipments partially recovered.
Prices climbed again in the third quarter as fighting resumed and attacks threatened oil infrastructure and shipping.
Brent averaged $114 in September, according to the US Energy Information Administration, which expects prices to remain elevated as supply disruptions persist.
