Global oil prices fell by more than 3 percent on Friday, October 2, as discussions over proposed crude oil and diesel stock releases eased concerns about tight energy supplies.
As of 10:30 a.m. West Africa Time (WAT), Brent crude futures declined by $3.10, or 3.03 percent, to $99.21 per barrel, while West Texas Intermediate (WTI) fell by $3.88, or 4.18 percent, to $88.99 per barrel.
The decline followed discussions among European Union countries over a French proposal to release 50 million barrels of diesel, alongside a proposed release of another 50 million barrels of crude oil by members of the International Energy Agency (IEA).
The proposed releases are intended to ease pressure on fuel supplies and prices amid concerns over tight refined-product markets and disruptions linked to the Middle East conflict.
Signs of improving crude flows through the Middle East Gulf have also weighed on prices by reducing some concerns about supply disruptions. However, geopolitical tensions and shipping risks continue to create uncertainty.
The market is therefore responding to the prospect of additional supplies, even as risks to crude and refined-product availability remain.