Crude Oil Price Today: Brent Falls to $103.17, WTI at $101.30 on September 18

Key Takeaways

• Brent crude futures were at $103.17 per barrel at 3:38 PM IST, down $1.65 or 1.6% from the previous settlement. International markets were still trading, so this was a live post-Indian-market quote rather than a final settlement.
• WTI crude was at $101.30 per barrel, down $0.61 or 0.6% at the same Reuters observation point.
• The Brent-WTI spread stood at approximately $1.87 per barrel.
• Oil prices were declining for a third straight session as additional Saudi crude movements through Oman, expectations of restored East-West pipeline capacity and higher refined-product inventories eased immediate supply concerns.
• Physical shipping conditions remained constrained: preliminary data cited by Reuters showed four commodity vessels had crossed the Strait of Hormuz on Thursday, compared with a 10-day average of about 16.

International crude prices remained under pressure after the Indian equity market closed on Friday, with Brent trading above $103 a barrel and WTI above $101.

At 10:08 GMT, or 3:38 PM IST, Brent crude futures were down $1.65 at $103.17 per barrel, while US West Texas Intermediate crude was down $0.61 at $101.30. The international session had not ended, so these figures are live post-market quotes rather than final Friday settlement prices.

Brent and WTI Prices

What Happened to Brent and WTI Today?

Crude prices extended their decline into a third consecutive session on September 18. The immediate focus shifted from the initial disruption to Saudi infrastructure towards the availability of alternative supply routes and the possible restoration of pipeline flows.

Saudi Arabia has been loading additional crude via Oman, while reports indicate that the kingdom is working to restore part of the capacity of its East-West pipeline after the system was damaged in an attack. The pipeline links Saudi production areas with the Red Sea export hub at Yanbu and provides an alternative route when shipping through the Gulf is disrupted.

Refined-product inventories also played a role. Reuters cited data in a Morgan Stanley note showing global refined-product stocks increased by 3.7 million barrels in the latest week, with builds in Western markets and Singapore. China's refined-oil product exports rose 12.7% year on year in August, with jet-fuel exports reaching a record.

The supply environment nevertheless remained constrained. Saudi Arabia and Yemen's Houthis exchanged fresh strikes on Thursday, while traffic through the Strait of Hormuz continued at levels below recent averages. Preliminary shipping data showed four commodity vessels passed through the Strait on Thursday versus a 10-day average of roughly 16.

This combination explains why oil prices remained above $100 even as immediate fears surrounding Saudi export disruptions moderated.

What Is the Difference Between Brent and WTI?

Brent is the internationally referenced crude benchmark used extensively in the pricing of oil supplied across Europe, Africa and the Middle East. WTI is the principal US crude benchmark.

At 3:38 PM IST, Brent was $103.17 and WTI was $101.30, leaving Brent at a premium of approximately $1.87 per barrel.

The spread can change because the two benchmarks reflect different crude qualities, delivery locations, storage conditions and regional supply-demand balances.

Why Do Crude Prices Matter for India?

India's Import Bill

India imports a large share of the crude oil it consumes. If crude prices remain higher while import volumes and the rupee exchange rate are unchanged, the dollar and rupee value of those imports increases. The reverse applies when crude prices decline.

Inflation

Crude is an input into fuels, transport and a wide range of petroleum-derived products. The eventual effect on domestic inflation depends on several additional factors, including exchange rates, taxes, refining economics and the extent to which international price changes are passed through.

Airlines and Logistics

Aviation turbine fuel and diesel are important operating-cost components for airlines and logistics businesses. Changes in international crude prices can influence fuel costs, although domestic pricing, hedging and contractual arrangements affect how quickly those changes reach companies.

Paints, Chemicals and Manufacturing

A range of chemicals, solvents, polymers and other industrial inputs are linked to petroleum feedstocks. Changes in crude and refined-product prices can therefore affect input costs across several manufacturing industries.

Refiners and Oil-Marketing Companies

For refiners, crude represents the principal raw-material cost, while profitability also depends on the prices realised for refined products. Consequently, crude prices alone do not determine refining margins.

Oil-marketing economics likewise depend on domestic retail prices, procurement costs and applicable government policies.

Upstream Oil Producers

Higher international crude prices can increase the realised value of oil production, but the eventual financial effect also depends on production volumes, operating costs, contract structures, taxation and domestic pricing arrangements.

Rupee and External Balance

Because crude purchases are largely dollar-denominated, changes in India's oil import bill interact with demand for foreign currency and the wider trade balance. The magnitude depends on both oil prices and import volumes, as well as movements in USD/INR.