Oil prices settle mixed as WTI jumps 3% on US inventory drop

p>Global oil benchmarks closed with diverging results on Friday, 16 October, as market participants balanced potential shifts in US sanctions enforcement against a significant drop in American crude stockpiles. Brent crude futures fell 14 cents, or 0.13 per cent, to settle at US$105.92 per barrel. In contrast, US West Texas Intermediate (WTI) crude climbed US$2.88, or 3.03 per cent, to finish at US$97.97 per barrel. Inventory data drives WTI gains The sharp rise in WTI was primarily triggered by new data showing a substantial decline in US crude oil inventories. This domestic supply tightness outweighed broader market concerns regarding global demand. The price gap between the two benchmarks narrowed as WTI reacted to the immediate physical constraints in the North American market. Sanctions and geopolitical risk Brent’s slight decline follows reports that the United States may ease restrictions on the "shadow fleet"—tankers operating outside Western shipping regulations to transport sanctioned oil. Investors are weighing this potential increase in global supply against the ongoing geopolitical risk premium tied to Middle East developments, which continues to provide a floor for prices. This price movement follows the latest settlement data released on Friday, 16 October, reflecting high volatility in energy markets. Traders are now monitoring official US Energy Information Administration (EIA) reports to confirm the extent of the inventory drawdown and its impact on Q4…