WTI Stays Above $100 Amid Mid-East Diplomacy, More EU Fuel


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) - Oil prices edged lower Thursday (10/29), 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. 

   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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