Oil
Oil prices mixed amid supply recovery and shipping risks
Global crude benchmarks settled mixed as traders balanced recovering Middle East supplies and persistent shipping threats against weaker demand forecasts.
Key points
- December Brent crude declined slightly to 105.92 US dollars per barrel.
- West Texas Intermediate increased to 96.50 US dollars a barrel.
- Persian Gulf shipments rose significantly in September according to the International Energy Agency.
- U.S. commercial crude inventories saw a substantial drawdown last week.
What happened
Global oil futures settled mixed on Thursday as market participants weighed an uncertain demand outlook against signs of recovering crude supplies from the Middle East and ongoing security threats near key maritime chokepoints. Yahoo Finance reported that December Brent futures edged down 0.1 percent to settle at 105.92 US dollars a barrel, while West Texas Intermediate for December delivery increased 2.8 percent to 96.50 US dollars a barrel.
The U.S. benchmark received support from a larger-than-expected withdrawal in domestic crude stockpiles. According to the U.S. Energy Information Administration, commercial crude inventories dropped by 8.6 million barrels during the previous week. Production declined by 300,000 barrels per day as Hurricane Isaias disrupted offshore operations in the Gulf of Mexico, while import volumes also fell.
Why it matters
Geopolitical risks continued to influence pricing, with maritime security remaining under scrutiny following reported attacks on vessels near the Strait of Hormuz. The Wall Street Journal noted that two Emirati cargo ships sank after attacks, and the U.K. Maritime Trade Operations issued warnings regarding container ships struck by projectiles in the region.
Despite these security challenges, Middle East exports have rebounded notably. The International Energy Agency stated that Persian Gulf shipments grew by 4.4 million barrels per day to reach 13.9 million barrels per day in September, recovering to over 75 percent of prewar levels. Total global supply rose by 2.5 million barrels per day to 102.3 million barrels per day, driven primarily by producers in the Gulf region.
What comes next
Market analysts note that tanker availability and freight rates remain critical factors influencing the price spread between international and U.S. benchmarks. While recent inventory draws provided near-term support for domestic crude, analysts at Ritterbusch and Associates cautioned that the large stock decline may represent a temporary regional disruption linked to storm impacts rather than a sustained trend.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
