Crude Oil Prices Slip as Gaza Peace Progress and Rising US Inventories Shape Market Sentiment

Crude oil prices fell as traders reacted to signs of easing tensions in the Middle East and an unexpected rise in US crude inventories. Brent slipped below $66 a barrel after gaining over 1% in the previous session, while West Texas Intermediate (WTI) hovered near $62. 

Market sentiment improved after the US announced that Israel and Hamas had agreed on a peace framework to release hostages in Gaza, raising hopes for stability in the region and reducing war-related supply risks.

Rising US Inventories and Higher Global Output Add to Weakness

Official data revealed that US crude inventories rose for the second consecutive week, reflecting a temporary imbalance between supply and demand. Although levels at the Cushing, Oklahoma, hub and refined product stocks declined slightly, overall storage builds weighed on crude oil prices. 

Outside the Middle East, geopolitical disruptions continue, particularly due to Ukrainian attacks on Russian oil facilities. However, the impact has been offset by stronger production elsewhere, reinforcing expectations of an oversupplied market.

Market Surplus Expected in the Coming Months

The International Energy Agency (IEA), have forecasted that crude oil prices may face continued headwinds as supply growth surpasses demand. Goldman Sachs projects Brent crude to average around $56 a barrel in 2026, citing rising inventories and slower consumption growth. These trends indicate that price recovery may remain limited unless demand strengthens.

Crude Oil Prices in India Slip Amid Moderate Trading on MCX

As of 09:21 AM IST on October 9, 2025, crude oil futures for the October 20 expiry were trading at ₹5,526 per barrel on the MCX, marking a decline of ₹50 or 0.9% from the previous close of ₹5,576. The trading session opened at ₹5,520, while the spot price remained at ₹5,664 per barrel.

The day’s price range so far has been between ₹5,516.05 and ₹5,531, with an average price of ₹5,527.36. Market participants recorded a trading volume of 1,076 lots, while open interest stood at 11,953 contracts, reflecting a 1.31% increase in positions. The best buy price in the market was ₹5,526 for 9 lots, while the best sell price was ₹5,528 for 21 lots.

The lot size for crude oil futures on MCX continues to be 100 barrels per contract, with a tick size of 100, providing a benchmark for investors and traders to gauge market movements. The moderate decline indicates cautious trading amid fluctuating global crude trends and domestic demand considerations.

Crude Oil vs Other Energy Commodities

Note: All data and price movements are based on market updates as of 8:45 AM IST on October 9, 2025.

Read more: Gold and Silver Prices Remain Firm: Check Rates In Your City

Conclusion

Crude oil prices remain under pressure as geopolitical calm and rising inventories outweigh temporary gains. With global output increasing and demand growth moderating, prices may stay range-bound in the near term.

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