WTI falls nearly 4% below $90 as talks focus on diesel reserve releases

Oil prices fell on Friday amid discussions over releasing additional diesel and crude oil reserves, easing concerns about tight global energy supplies.

European gasoil futures also fell around 5% on Friday following reports of talks over potential reserve releases.

Brent crude fell 2.4% to $99.88 a barrel by 11:49 GMT, while US West Texas Intermediate crude dropped 3.6% to $89.50 a barrel.

Both benchmarks are heading for weekly losses, with Brent down around 4.1% since the start of the week and WTI falling about 3.2%.

European gasoil futures, a key benchmark for diesel prices, dropped around 5% to $1,380.50 per metric ton.

French proposal to release reserves

European Union countries on Friday discussed a French proposal to release additional diesel reserves in response to US pressure on European countries to bring more supplies to the market in an effort to curb the sharp rise in fuel prices, a source familiar with the discussions told Reuters on Friday.

The source said EU governments discussed during a phone call on Friday a French proposal under which European countries would release 50 million barrels of diesel, while members of the International Energy Agency would release 50 million barrels of crude oil.

Oil prices closed higher in the previous session after Reuters reported that Chinese refiners had suspended petroleum product exports for October as Beijing seeks to preserve domestic inventories.

Meanwhile, the Wall Street Journal reported that the United States is sending a third aircraft carrier and as many as 10,000 additional troops to the Middle East as US President Donald Trump considers resuming strikes on Iran after the US midterm elections.

“The gradual recovery in oil flows through the Middle East Gulf, including pipeline bypass routes, has accelerated recently,” Barclays analysts said in a note.

However, the bank said underlying physical market fundamentals remain strong, with inventories continuing to decline and spot cargoes trading at significant premiums to forward prices.

Barclays raised its Brent crude price forecast for the fourth quarter by $20 a barrel to $115 and lifted its 2026 forecast to $100 a barrel.

Separately, Ukrainian President Volodymyr Zelenskyy said on social media on Friday that Ukraine had targeted oil facilities in Russia’s Samara and Volgograd regions over the past 24 hours.