Supply jitters keep Brent on the boil
The front-month ICE Brent contract has jumped $3.27/bbl higher on the day from Friday, to trade at $108.51/bbl at 09.00 GMT.
IMAGE: (L-R) Russia, Saudi and US flags against oil pump and oil refining factory at night. Getty Images
Upward pressure:
Growing concerns over escalating conflicts in the Middle East, in addition to the ongoing Russia-Ukraine war, have kept Brent on its toes. The benchmark gained around 3% over last week, briefly touching $110/bbl on Friday, its highest level since May 2026, before closing just below that mark.
Houthi attacks on Saudi Arabia as well as intensified Iranian strikes on Gulf energy infrastructure and vessels in the Strait of Hormuz have heightened fears of supply disruptions.
Russia and Ukraine continue targeting each other's energy infrastructure, with the latest strike on Russia's Ryazan oil refinery adding to market jitters.
Downward pressure:
US President Donald Trump's decision to waive several sanctions on Russia could pave the way for more Russian fuel volumes to reach the global market, putting some downward pressure on Brent's price.
Trump signed the order on 16 October, just two days before the sanctions were due to take effect. The waiver also covers provisions allowing tariffs of up to 100% on major buyers of Russian oil and gas.
The move follows Trump's announcement of the diesel purchase deal with Russian President Vladimir Putin on 9 October. Trump said Russian shipments could start at around 2.3 million bbls this month, before climbing to 7.6 million bbls.
By Konica Bhatt
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