MCX crude oil futures for October delivery fell 2.87% to ₹8,660 per barrel on Monday. The decline follows the G7’s announcement to release 100 million barrels of crude and diesel from strategic reserves. This supply increase has eased global price pressure, though geopolitical risks remain a key factor for the energy sector.
On Monday, October 5, 2026, crude oil futures on the Multi Commodity Exchange (MCX) experienced a sharp decline. The October delivery contracts dropped by ₹256, settling at ₹8,660 per barrel, which marks a 2.87% retreat from previous levels. This downward movement reflects a significant shift in market sentiment as traders reacted to new supply signals emerging from global energy policies.
The primary driver for this price correction is the G7’s decision to release 100 million barrels of crude oil and diesel from strategic reserves. By injecting this additional supply into the market, the group aims to ease concerns over availability and dampen the price volatility that has affected the sector recently. This influx of supply has led to immediate selling pressure, as participants move to adjust their positions against the backdrop of increased inventory levels.
Domestic market movements are closely tied to international benchmarks, which also showed signs of weakness. West Texas Intermediate (WTI) crude declined to approximately $90 per barrel, while Brent crude retreated to around $101 per barrel. The synchronized drop in both the local and international markets indicates that the global narrative of supply expansion is the dominant factor influencing trading sessions today.
For Indian investors, the direction of crude oil prices is a critical indicator. As a large importer of energy, India is sensitive to fluctuations in oil costs, which can directly influence inflation and the trade balance. While the current price dip may provide some relief, market observers are looking beyond the immediate supply release. The outlook for energy prices remains mixed, as the benefit of increased supply must be weighed against the persistent weakness in spot market demand across major global economies.
Despite the price cooling, the energy sector is not entirely free of risks. Geopolitical tensions continue to be a source of volatility, particularly concerning critical trade routes like the Strait of Hormuz in the Middle East. Any sudden disruption in these supply corridors could quickly reverse the price gains or losses, regardless of the recent reserve releases. Investors will now closely track whether this lower price level stimulates fresh demand in the spot market or if the supply-demand imbalance continues to pressure prices further.