|
|
Oil dropped $2 as rising Gulf flows and G7 reserve pledges offset Iran war risksGlobal crude oil futures shed nearly 2% on Monday as rising Middle Eastern exports and coordinated G7 stock pledges pressured prices, though persistent US–Iran war risks capped deeper losses. |
|
Global crude oil futures shed nearly 2% on Monday as rising Middle Eastern exports and coordinated G7 stock pledges pressured prices, though persistent US–Iran war risks capped deeper losses.
|
BENCHMARK |
SETTLE (US$/BBL) |
CHANGE (US$) |
CHANGE (%) |
TREND |
|
Brent ICE, active front-month (Dec) |
100.32 |
−1.93 |
−1.9% |
▼ DOWN |
|
WTI NYMEX, front-month |
89.43 |
−1.68 |
−1.8% |
▼ DOWN |
|
Settlement prices for Monday, 5 October 2026. Change versus previous settlement. |
||||
|
BRENT Defended $100 mark despite $1.93 pullback |
WTI Slipped below $90 as G7 pledges supply intervention |
Expanding Persian Gulf crude shipments and G7 emergency stock pledges weighed on benchmarks, dragging WTI below $90/bbl and pushing Brent toward the triple-digit boundary. Downward pressure compounded after Saudi Aramco unexpectedly slashed its November official selling prices (OSPs) for Asia to six-year lows, signalling weak spot appetite across regional refining centres.
However, losses met firm support above $100/bbl. Fighting near the Bab el-Mandeb Strait and recurring Houthi hostilities continue to anchor the geopolitical risk premium, while upstream war disruptions prompted OPEC+ to postpone its 2027 quota review. PVM Oil Associates warned that persistent infrastructure threats rule out any near-term supply truce.
The structural floor beneath crude is further hardened by acute depletion across state buffers. US Strategic Petroleum Reserve (SPR) volumes dropped to 283 million barrels last week—the lowest level since October 1982—prompting Saudi Aramco CEO Amin Nasser to caution that replenishment could take up to two years.
Written by: Aiman Haikal
