Noida, Oct 6 (APAC Media): Oil prices edged higher on Tuesday but remained under pressure after Saudi Aramco unexpectedly cut its November crude prices for Asian buyers, while renewed military tensions in the Middle East helped limit the decline.
Brent crude futures rose 0.37% to $100.68 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 0.28% to $89.68 a barrel as of 11:25 a.m. IST.
After Saudi Aramco sharply reduced the price of crude sold to Asian customers for November, the market became unsettled, reaching a six-year low. The company, however, raised prices slightly for buyers in northwest Europe and the Mediterranean.
The price reductions added to concerns that elevated crude prices could eventually weaken global demand, particularly as the wider Middle East conflict shows few signs of easing.
News agency reports last week said Saudi Arabia was offering steep discounts on oil loaded from Oman to offset record-high freight costs, a move that indicated improving availability of physical crude in parts of the market.
Gulf producers have continued moving larger volumes of crude through the Strait of Hormuz despite heightened shipping risks. Iraq is seeking to hire additional vessels to transport oil through the strategic waterway, while Kuwait has said its oil production is running at around 75% of pre-war levels.
Saudi Arabia also significantly lowered the price of its flagship crude grade for Asian buyers as supply flows improved, providing another indication that market conditions may be loosening.
Investors are now awaiting the U.S. Energy Information Administration’s Short-Term Energy Outlook, due later on Tuesday, for fresh indications on U.S. oil demand, production and broader energy-market conditions.
Crude prices fell sharply on Monday after signs emerged that Middle East oil exports were recovering. The Group of Seven nations also pledged to increase global supplies by 100 million barrels, although it remained unclear whether the additional oil would be part of an existing emergency stock release.
Shipping data released Monday showed that Gulf oil exports returned to pre-war levels for roughly half of September, helped by Saudi Arabia loading crude from both the Red Sea and the Gulf.
Meanwhile, Saudi-backed Yemeni forces recaptured coastal areas near the Bab el-Mandeb Strait from Iran-aligned Houthi fighters this week, raising hopes that shipping and oil flows through the key route could improve.
The Houthis had previously established positions along the strait and launched missile attacks on vessels operating in the region. In retaliation for Monday’s offensive, the group attacked several Saudi targets, including an Aramco refinery in Riyadh.
The renewed Saudi-Houthi fighting has remained a major focus for oil markets after the dormant Yemeni civil war intensified as a spillover from the broader U.S.-Iran conflict.
The United States and Iran also remained locked in tensions over the strategically vital Strait of Hormuz, keeping geopolitical risks elevated for global oil markets.
–ENDS–
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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