Crude Oil Price Today: Brent Trades Near $98.56, WTI at $88.70 After Indian Market Close on October 1

Brent-WTI spread: approximately $9.86 per barrel. 

A consistently timed high-low range for both benchmarks was not available from the same post-market data snapshot, so intraday highs and lows have not been combined from separate timestamps.

What Happened to Brent and WTI Today? 

Crude prices moved in a wide range during October 1 as two competing factors remained in focus: the recovery in physical oil exports from the Gulf and the continuing risk associated with the Middle East conflict. 

Earlier in the session, Brent had fallen by more than 1% before recovering. By 07:04 GMT, Brent was at $98.67 per barrel and WTI at $90.09, with both benchmarks having reversed earlier declines. 

One factor weighing on the supply-risk premium was the recovery in Gulf exports. 

Saudi Arabia resumed tanker loadings from Yanbu after restarting flows through its East-West Pipeline, providing an alternative route for crude that does not depend entirely on the Strait of Hormuz. 

Estimates also indicated that overall Middle East crude exports had moved closer to pre-conflict levels.

US Crude Inventories Increase

US inventory data added another supply-side factor. 

Commercial crude inventories increased by approximately 922,000 barrels to 427.3 million barrels in the week ended September 25. 

The increase contrasted with market expectations for a modest inventory decline. 

A rise in inventories can indicate that crude supply exceeded refinery demand and exports during the reporting period, although a single week's movement can also reflect changes in imports, exports, refinery utilisation and logistical flows.

US-Iran Diplomacy Remains in Focus

Markets also continued to monitor diplomatic developments between Washington and Tehran. 

Iran said it had received a US response to its latest proposal, keeping negotiations in focus alongside the continuing military and shipping risks associated with the conflict. 

For crude markets, developments involving Iran matter partly because of the country's own production and exports and partly because of its geographic proximity to the Strait of Hormuz. 

The Strait is a major transit route for crude oil and petroleum products exported from Gulf producers. 

What Is the Difference Between Brent and WTI?

Brent and WTI are the world's two principal crude-oil benchmarks. 

Brent is primarily associated with North Sea crude and serves as a reference price for a large share of internationally traded oil. 

WTI is the principal US crude benchmark, with the NYMEX futures contract linked to physical delivery at Cushing, Oklahoma. 

Using the latest comparable October 1 post-market quotes of about $98.56 for Brent and $88.70 for WTI, Brent was trading at a premium of approximately $9.86 per barrel. 

The spread can change because of differences in regional supply, transport capacity, inventories, crude quality and geopolitical exposure.

Why Do Crude Prices Matter for India?

India's Import Bill 

India imports most of the crude oil it consumes. 

For unchanged import volumes and exchange rates, every increase in the dollar price per barrel raises the gross value of the country's crude-import requirement. A decline has the opposite mechanical effect. 

The final rupee cost also depends on USD/INR because international oil contracts are predominantly dollar-denominated. 

Inflation 

Crude prices can pass through the economy through petrol, diesel, aviation fuel, transport costs, petrochemicals and other industrial inputs. 

The magnitude and timing of that pass-through depend on domestic taxes, retail fuel pricing, exchange rates and how long international prices remain at a particular level. 

Airlines and Logistics 

Fuel is a significant operating expense for airlines and transportation companies. 

Changes in crude and refined-product benchmarks can therefore alter operating costs, although the financial effect also depends on hedging, fuel efficiency and the extent to which costs are passed through to customers. 

Paints, Chemicals and Manufacturing 

Oil is an upstream input for numerous petrochemical derivatives, solvents, polymers and industrial materials. 

Changes in crude and derivative prices can therefore affect raw-material costs across paints, chemicals, packaging and several manufacturing industries. 

Refiners and Oil-Marketing Companies 

A change in crude prices does not translate mechanically into an equal change in refinery profitability. 

Refiners purchase crude and sell multiple petroleum products, making the spread between input costs and product realisations more relevant than the crude benchmark alone. 

For oil-marketing companies, domestic pump prices, taxes and marketing margins are additional variables. 

Upstream Oil Producers 

For upstream producers, crude benchmarks can influence realised revenue per barrel. 

The eventual financial impact also depends on production volumes, crude quality, pricing formulas, royalties, taxes and any hedging arrangements. 

Rupee and External Balance 

Higher dollar-denominated crude costs can increase India's foreign-currency requirement for oil imports. 

The effect on the current account depends on the interaction between oil prices, import volumes, USD/INR and movements elsewhere in India's trade balance.