DBT Bureau
Pune, 10 Oct 2025
Crude oil prices declined by 2.04% to settle at 5,462 per barrel as markets reacted to reports of a potential ceasefire deal in Gaza, easing geopolitical tensions in the Middle East. On the supply front, U.S. crude inventories rose for a second straight week by 1.8 million barrels to 416.5 million barrels, although they remain near seasonal lows. The EIA reported a decline in stockpiles at the Cushing hub and lower refinery runs, while gasoline inventories surged by 4.1 million barrels and distillate stocks rose by 578,000 barrels, signaling weaker refining margins and moderate demand recovery. OPEC+ maintained its global oil demand growth forecast for 2025, citing continued strength in global economic activity. The group raised crude output by 509,000 barrels per day in August as part of its plan to unwind previous production cuts, with Saudi Arabia and Russia leading the expansion to regain market share from U.S. shale producers. Russia’s output rose to 9.17 million bpd in August, and officials indicated no immediate need for further diesel export restrictions. Technically, crude oil is under long liquidation as open interest fell by 4.58% to 11,259 contracts while prices dropped 114. The commodity has immediate support at 5,414, and a break below could test 5,365, while resistance is seen at 5,551, above which prices may move toward 5,639.
Market outlook:
