Brent and US crude futures retreat from near six-month highs as markets weigh hopes of easing US-Iran tensions against continued attacks on Saudi Arabia and potential oil supply disruptions.
BEIJING, CHINA — WEB DESK
Global crude oil prices fell on Monday, October 26, retreating from near six-month highs reached late last week, even as continued attacks on Saudi Arabia kept concerns about potential supply disruptions in focus.
US West Texas Intermediate (WTI) crude futures declined by $1.60, or 1.55%, to $101.67 per barrel in early trading. Brent crude futures dropped $1.56, or 1.34%, to $115.16 per barrel at 0018 GMT.
The pullback followed a strong week for oil markets. Brent gained around 6% over the previous week, while WTI rose 2.3%. Both benchmarks had settled nearly $3 higher on Friday after attacks in Saudi Arabia heightened concerns about the security of energy infrastructure and regional oil supplies.
The Houthis said they had targeted a Saudi airport and oil facilities over the weekend. Saudi authorities reported intercepting additional missiles and drones on Sunday. The attacks have raised concerns about possible disruption in one of the world’s most important oil-producing regions.
Despite those risks, prices moved lower as traders reassessed the sharp rally recorded last week and monitored diplomatic efforts aimed at reducing tensions between the United States and Iran. Market sentiment remains sensitive to developments that could affect oil production, shipping routes and exports across the Middle East.
Saudi Arabia also resumed partial operations at its main airport following damage from earlier attacks, although security concerns remained.
The latest decline does not mean supply risks have disappeared. Oil markets continue to face uncertainty over regional security, potential disruptions to shipments and the direction of diplomatic efforts.
Prices may remain volatile as traders respond to new developments affecting global supply and demand. The latest market movement highlights the competing forces shaping energy prices: persistent geopolitical risks on one side and hopes of easing tensions on the other.
