Oil prices settle down

Business Recorder reported that oil prices ended lower on Wednesday after a volatile session. Brent crude futures fell 38 cents to USD100.20 a barrel, while US West Texas Intermediate dropped USD1.16 to USD88.28. The move followed an International Energy Agency decision to accelerate oil stock releases and give diesel priority, a step aimed at easing record-high fuel prices.

The IEA said finishing earlier releases at speed might free up about 100 million barrels, though some analysts and governments argued this was not a new intervention on that scale. France is preparing to tap 10 million barrels of diesel from strategic reserves, Franceinfo radio said, relying on anonymous sources. Separately, US crude and distillate inventories declined last week while gasoline stocks rose, according to the Energy Information Administration.

According to PVM analyst Tamas Varga, markets doubt that the recent increase in Middle Eastern output and shipments can be maintained, while the storm nearing the US and fighting across the Middle East and Ukraine also supported prices. Forecasters said a Gulf of Mexico storm could reach hurricane strength within two days, which would make it the first Atlantic hurricane of 2026, and oil and gas facilities are at risk. A model forecast from Earth Science Associates puts potential Gulf output losses at about 11.2 million barrels, compared with 7.1 million barrels affected by Tropical Storm Bertha in July.