DTN Oil Update
WTI Stays Above $100 Amid Middle East Diplomacy, More EU Fuel
SECAUCUS, N.J. (DTN) -- Oil prices edged lower Thursday, remaining above the key $100 bbl level, as traders awaited the outcome of diplomatic overtures between Washington and Tehran while acknowledging the addition of European fuel reserves to the market.
Benchmark crude contracts trimmed morning losses but still ended the session in the red as traders digested reports that U.S. Vice President JD Vance had extended a diplomatic proposal to Iran's leadership via Qatari mediators, aimed at establishing a temporary peace deal. While Tehran reiterated its openness to diplomatic resolution, Iranian officials warned that any renewed military escalation in the Persian Gulf risks disruptions to maritime transit through the Strait of Hormuz.
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At settlement, NYMEX WTI crude for December delivery fell $0.78, or 0.76%, to $102.00 bbl, after an intraday low at $99.79 bbl.
ICE Brent crude for December delivery moved down $0.44, or 0.38%, to close at $114.88 bbl, recovering from a session low of $112.89 bbl.
Downstream, NYMEX ULSD for November delivery eased $0.0792, or 1.64%, to finish at $4.7360 per gallon, bouncing off an intraday floor of $4.6339 per gallon. NYMEX RBOB for November delivery bucked the downward trend, advancing $0.0116, or 0.37%, to end the session at $3.1850 per gallon after touching a low of $3.1000 per gallon.
The U.S. Dollar Index slid 0.146 points to 101.885 against a basket of foreign currencies.
Adding to downstream pressure, European energy ministers meeting in Luxembourg formally authorized the release of 42 million barrels from strategic petroleum reserves over the next three months, with 21 million barrels specifically dedicated to diesel to curb regional retail price spikes. France is set to deliver its initial 10-million-barrel diesel tranche at cost price in the coming days, targeting a direct reduction at French pumps following recent domestic protest actions over elevated energy costs.
In the U.S., structural supply constraints remain firmly in focus following Wednesday's Energy Information Administration (EIA) weekly report. Domestic distillate inventories fell by 1.5 million bbl during the week ended Oct. 23 to 102.8 million bbl, keeping national diesel stockpiles 8.3% below year-ago levels near four-month lows.
Meanwhile, commercial crude oil inventories recorded a fourth consecutive weekly draw, falling 1.9 million bbl to 410.6 million bbl -- their lowest level since late July -- coinciding with the conclusion of summer Strategic Petroleum Reserve drawdowns.
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