Oil benchmarks diverge as WTI rises 0.67%, Brent falls below $106

Oil benchmarks moved in different directions in early Wednesday trading, with US West Texas Intermediate crude rising while Brent and Abu Dhabi's Murban crude declined, according to market quotes at 7:31 a.m. Tokyo time on October 16, 2024. WTI crude futures rose 63 cents, or 0.67%, to $94.77 a barrel, while Brent crude fell 96 cents, or 0.9%, to $105.69 a barrel.

OPEC Basket leads percentage gains#

The OPEC Basket recorded the strongest percentage gain among listed benchmarks, rising $4.53, or 4.14%, to $114.03 a barrel. Murban crude, the Abu Dhabi benchmark, declined $1.67, or 1.49%, settling at $110.57 a barrel. The divergence across benchmarks indicates mixed directional movement in crude markets rather than uniform price action. Differences in benchmark pricing periods and update schedules affect direct comparisons between the quoted figures.

Supply routes and transport costs under pressure#

Market participants are assessing Middle East supply route risks alongside the possibility of further Russian diesel availability and questions about global consumption levels. On October 12, OPEC and non-OPEC producers issued a warning that energy flow costs for shipping and insurance had climbed above one-third of commodity value in certain cases, creating inflationary pressure, according to the OPEC statement. The cost increases affect delivery economics even where crude production remains available.

OPEC+ output rises in September#

OPEC's October report showed that combined OPEC+ oil production increased by approximately 900,000 barrels per day in September, reaching 39.07 million barrels per day. The production increase occurred as shipping routes, insurance terms and delivery costs remained uncertain. Higher output does not automatically resolve supply disruptions when transport and insurance costs remain elevated, according to the OPEC report.

Friday selloff on stockpile release discussion#

Oil prices fell sharply on Friday as European governments discussed another coordinated release of emergency oil stocks, with WTI dropping 3.78% to $89.36 and Brent falling 2.46% to $99.79 per barrel at 6:54 a.m. ET, according to Oilprice.com. European Energy Commissioner Dan Jørgensen told Euronews that releasing oil from strategic reserves to curb fuel prices "is a possibility" and that discussions are ongoing with all International Energy Agency members. The European Commission held a call on Thursday with several countries to assess different scenarios, an EU source told Euronews.