Noida, Oct 26 (APAC Media): Crude Oil prices declined on Monday after climbing to almost six-month peaks last week, as expectations of reduced tensions between the United States and Iran supported market sentiment, while continued attacks on major Saudi Arabian oil facilities sustained concerns over supply disruptions.
Oil prices retreated on Monday, with Brent crude futures falling 1.85% to $109.65 a barrel and U.S. West Texas Intermediate (WTI) crude dropping 2.2% to $101 by 10:10 a.m. IST, as hopes of diplomatic efforts to ease tensions between Washington and Tehran offset concerns over potential supply disruptions in Saudi Arabia.
Crude prices had ended nearly $3 higher on Friday after Houthi attacks in Saudi Arabia heightened fears of disruptions to global energy supplies. Brent gained around 6% over the week, while WTI advanced 2.3%.
Supply concerns resurfaced over the weekend after Yemen’s Iran-backed Houthi group claimed responsibility for attacks targeting a Saudi airport and oil infrastructure.
Saudi authorities said they intercepted additional missiles and drones on Sunday, while the kingdom’s main airport partially resumed operations following damage sustained in an earlier wave of attacks.
Saudi Arabia’s position as one of the world’s leading oil exporters makes threats to its energy infrastructure a significant concern for global markets. Any disruption to crude production, export facilities or transportation networks could tighten supplies and increase the geopolitical risk premium embedded in oil prices.
However, the extent of the impact on crude markets will depend on whether the attacks result in sustained disruptions to production and exports.
Traders are also monitoring diplomatic initiatives aimed at containing the conflict and preventing further damage to critical energy infrastructure.
Efforts to ease regional tensions continued on Sunday, when Qatari mediators travelled to Tehran as part of diplomatic engagement coordinated with the United States, an official familiar with the matter said.
The diplomatic push came amid continued hostilities, with the Houthis claiming strikes on Saudi targets on Saturday and Riyadh reporting further missile and drone interceptions a day later.
The fallout from the U.S.-Israeli war against Iran, which began on February 28, continues to disrupt global energy markets. Companies are grappling with interruptions to commercial shipping through the strategically important Strait of Hormuz and Bab el-Mandeb Strait, raising concerns about the reliability of oil and fuel supplies.
Separately, Saudi Arabia and Singapore announced on Monday that state-owned oil giant Saudi Aramco plans to begin storing crude oil in Singapore in the second half of 2027.
The initiative aims to bolster the resilience of the company’s regional supply chain in response to increasing geopolitical uncertainties.
International Energy Agency chief Fatih Birol also warned against expectations of a swift recovery in energy markets, saying at an industry event in Singapore on Monday that he did not expect conditions in 2027 to return to levels seen before the war in Iran.
News Agency Inputs
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Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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