Oil eases from three-day gain with focus on Middle East, Russia
Fighting between Saudi Arabia and Iran-backed Houthis shows few signs of subsiding
Oil prices have eased slightly following a three-day rally, as traders take profits on the recent gains amid ongoing risks to energy supplies. The concerns are centered around the Middle East and Russia, with persistent threats to shipments from the region's major oil exporter.
Saudi Arabia has intercepted more missiles and drones launched by Yemen's Houthis, but the fighting with the Iran-backed militant group remains unresolved. Market participants are closely monitoring whether the violence will impact shipments from the Middle East, a key oil producer.
Meanwhile, Iran's attacks on ships in the Strait of Hormuz have increased, potentially threatening recent recovery in Persian Gulf oil exports. Crude prices have surged more than 70% in 2026 due to supply disruptions in the Middle East, while oil products like diesel have risen even more.
In a bid to curb soaring prices, US President Donald Trump announced a controversial deal for Russian diesel and an energy ceasefire between Moscow and Kyiv. However, the leaders of both countries and Trump seem skeptical about the deal, as it appeared to come as a surprise to them. Neither side has officially committed to stopping attacks on the other's energy infrastructure.
Russia is shipping less crude, as operations at its key Black Sea port slow down again due to security concerns in the area. This follows persistent attacks and rising fears in the region. The situation has been described as "dizzying" by Scott Shelton, an energy specialist at TP ICAP Group, with the Saudi attacks and Trump's claims of an energy ceasefire fueling market volatility.
The week has been marked by several significant events, including a Houthi assault on Riyadh's main airport that killed at least 16 people, including a US citizen, and wounded about 300. Trump has hinted at joining Saudi-backed strikes against the Yemen-based group. Saudi Arabia aims to increase its oil export capacity by repurposing existing gas pipelines, potentially adding 1.2 million barrels a day within seven to eight weeks.
The country also plans to expand its total pipeline capacity bypassing the Strait of Hormuz. Despite persistent attacks, crude flows have approached pre-war levels recently, and Saudi Arabia reported a rebound in September from the lowest in over three decades.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- IMF revises economic outlook for the Middle East anba.com.br
