Oil closes lower, WTI crude drops nearly 3%

Oil drilling rigs

Oil futures settled with a decline today, Oct. 11, as fears of supply shortages due to geopolitical tensions in the Middle East eased after Saudi Arabia pledged to help stabilize markets.

Brent crude futures for December delivery fell 2.1%, or to $1.83, to close at $85.82 per barrel, after touching $88.26 during trading.

WTI crude for November delivery dropped 2.9%, or $2.48, to record $83.49 per barrel, after touching $86.51 during the session.

In his speech during the Russian Energy Week conference, President Vladimir Putin stressed the continued coordination between OPEC+ members to ensure the ability to predict oil market movements.

Meanwhile, the US Energy Information Administration (EIA) in a report said that it expects global oil inventories would decline by 200,000 barrels per day in the second half of 2023 due to lower production targets among OPEC+ countries.

According to the short-term energy outlook report, the agency said: “We expect upward pressure on oil prices, with the spot price of Brent crude rising to an average of $95 per barrel in 2024.”

The American Petroleum Institute's report on oil inventories is expected to be issued later today, and the EIA is scheduled to issue official data on inventories on Oct. 12, amid expectations that crude inventories will rise by 1.3 million barrels.