US crude stocks fall 11.1 million barrels while oil benchmarks barely move

what happened

Physical crude prices held steady on Wednesday, traders said, even though industry figures pointed to a sizable draw in American crude inventories. Citing the American Petroleum Institute, market sources said stocks fell by 11.1 million barrels in the week ended October 9, with the data released Wednesday afternoon.

Gulf of Mexico output has resumed after platforms were halted and evacuated because of Hurricane Isaias. The Marine Minerals Administration said US producers in the region had shut in about 16.13% of current daily oil production.

Separately, Reuters reported, citing two senior Iranian officials, that Iran is using new methods against vessels crossing the Strait of Hormuz. According to the officials, the aim is to keep oil prices elevated and to influence the US midterm elections. Maritime officials said a container ship and a dry bulk carrier sank near the strait within 24 hours after being hit by projectiles in separate incidents. The International Energy Agency noted in its monthly report that record supertanker freight costs are squeezing margins for Asian refiners that depend heavily on Middle Eastern crude.

why it matters

ICE Brent December futures rose 37 cents to settle at 106.06 dollars a barrel, while WTI November crude held at 95.09 dollars. The Brent-WTI spread narrowed by 46 cents to minus 12.06 dollars. Traders are watching shipping risk around Hormuz alongside the latest drop in US inventories.

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