Quote on Crude Oil by Ashish Rajodiya, Head - Commodities, PL Capital
Below the Quote on Crude Oil by Ashish Rajodiya, Head - Commodities, PL Capital
“Crude oil is edging lower on Monday, with Brent near $101.5 a barrel and WTI just under $90, as the market weighs fresh supply relief against a Middle East that is still far from normal. The pullback follows the G7's decision to release 100 million barrels of crude and diesel from emergency stockpiles, with the diesel portion front-loaded over roughly the next 20 days and the balance spread across four months, after US diesel prices hit a record $6.52 a gallon on September 22. OPEC+ added to the calm by leaving its November production targets untouched and deferring any policy shift to next year. The relief is partial, though. Regional exports are still running at only 60–80% of normal volumes, Houthi control of the Bab el-Mandeb strait complicates the Red Sea workaround for Saudi barrels, and Brent's premium of more than $11 over WTI shows how tight seaborne supply remains outside the US. The next trigger is whether the stock release actually eases fuel prices or Hormuz flows stay constrained. A normalisation in tanker traffic would deepen the slide, while a fresh flare-up around Hormuz or Bab el-Mandeb would quickly overwhelm the reserve cushion.”
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