Crude Oil Prices Mixed, Brent Rises 0.5% in 5-Day, WTI Dips
Oil prices closed mixed on Friday as US President Donald Trump ruled out military strikes against Iran before November’s midterm elections, easing immediate supply concerns despite hurricane-related disruptions in the Gulf of Mexico and falling US crude inventories.
International benchmark Brent crude futures for December delivery traded at $102.82 per barrel Friday, up 0.5% from last Friday’s close of $102.25.
US benchmark West Texas Intermediate (WTI) crude futures for November delivery traded at $90.57 per barrel, down around 0.5% from $91.11 a week earlier.
Market sentiment remained mixed as US President Donald Trump’s announcement that the US would not launch military strikes against Iran before the Nov. 3 midterm elections eased immediate concerns, while earlier reports of Pentagon preparations for possible renewed military operations against Tehran continued to fuel uncertainty.
Trump’s remarks reduced near-term fears of further disruptions to Middle Eastern oil supplies, although Washington said its blockade of Iran would remain in place and announced fresh sanctions targeting vessels and companies involved in transporting Iranian oil.
According to previous media reports, Washington was preparing options for further military strikes against Iranian targets.
Security risks surrounding the Strait of Hormuz also remained elevated after Iranian officials warned that alternative shipping routes through the strategic waterway could be closed.
Concerns over maritime security intensified after a tanker was struck by multiple projectiles north of Qatar on Wednesday, according to the UK Maritime Trade Operations (UKMTO).
The incident, along with renewed Houthi attacks on Saudi energy infrastructure and continuing instability around the Red Sea, reinforced concerns over the security of regional oil shipments.
Meanwhile, Hurricane Isaias forced energy companies to suspend offshore operations in the US Gulf of Mexico, adding to concerns over tightening supplies.
According to the US Marine Minerals Administration (MMA), approximately 63% of oil production in the Gulf of Mexico, equivalent to 1.28 million barrels per day (bpd), had been shut in as of Thursday.
Major energy companies, including Shell, Chevron and bp, suspended operations at several offshore facilities as a precaution.
A larger-than-expected decline in US crude oil inventories also supported prices this week.
Commercial crude stocks fell by 3.2 million barrels to 424.1 million barrels in the week ending Oct. 2, compared with market expectations for an increase of about 1.9 million barrels, the Energy Information Administration (EIA) said.
Further support came from the EIA’s October Short-Term Energy Outlook, which raised its Brent crude price forecast for the fourth quarter by $14 to $105 per barrel, citing constrained Middle Eastern oil flows, declining global inventories and tight diesel supplies.
Meanwhile, the decision by seven OPEC+ producers to maintain their September production levels in November, rather than introduce an additional output increase, helped limit concerns over additional supply entering the market.
Prices also faced downward pressure from the G7’s decision to accelerate the release of 100 million barrels from emergency oil reserves over four months, as part of commitments made earlier this year to stabilise global energy markets and ease pressure on diesel supplies.
Additional pressure came from signs of recovering Middle Eastern crude exports despite continued restrictions on shipping through the Strait of Hormuz.
According to maritime intelligence firm Kpler, non-Iranian crude and condensate exports from the Middle East Gulf averaged at least 16.5 million bpd between Sept. 1 and 28, broadly matching pre-war levels as shipments continued through Hormuz and alternative export routes.
