New Delhi, Sep 18: Crude oil prices moved lower in futures trading on Friday as traders turned cautious amid softer global market cues and signs that some supply concerns were beginning to ease.
On the Multi Commodity Exchange (MCX), crude oil futures for October delivery declined by Rs 168, or 1.72 per cent, to Rs 9,590 per barrel, with the contract recording a business turnover of 4,478 lots.
The decline came as market participants reduced their positions amid weak demand in the spot market. The movement in domestic futures also followed a fall in international crude prices, where easing concerns over disruptions to Saudi oil supplies encouraged some selling.
International oil prices remained above the $100-a-barrel mark, however, keeping the global energy market under pressure. Brent crude fell to around $102.53 a barrel, while US West Texas Intermediate crude declined to about $100.04 a barrel on Friday.
Recent developments in the Middle East have added significant uncertainty to the oil market. Supply disruptions and damage to key infrastructure had pushed crude prices sharply higher earlier in the month. However, reports that Saudi Arabia was working to restore part of its affected pipeline capacity and reroute supplies have helped reduce some immediate concerns about shortages.
At the same time, weaker oil demand is providing some counterbalance to supply pressures. According to the International Energy Agency’s September Oil Market Report, global oil demand is expected to decline by 2.5 million barrels per day in 2026, while global oil supply is projected to fall by 5.7 million barrels per day.
The IEA has also highlighted a sharp reduction in global inventories, with observed oil stocks falling by 95 million barrels in August alone. Shrinking inventories and continuing risks to supply routes mean that the global market remains sensitive to further disruptions.
For India, movements in crude oil prices remain particularly important because changes in international energy costs can influence transportation, manufacturing, logistics and other operating expenses. A sustained rise in crude prices can increase input costs for businesses and add pressure to inflation, while a decline can provide some relief to energy-intensive sectors.
The latest fall in MCX crude futures therefore comes at a time when the global oil market remains highly volatile. While easing supply concerns have encouraged some selling, geopolitical developments, inventory levels and the pace of global demand will continue to influence prices in the near term.
For businesses and consumers, crude oil movements remain an important economic indicator, with energy costs affecting everything from freight and production to household spending and overall market sentiment.