Oil eases from three-day gain with focus on Middle East, Russia

OIL held steady after three days of gains as traders booked profits from the recent rally amid persistent risks to energy supplies stretch from the Middle East to Russia.

Brent was trading near US$106 a barrel while West Texas Intermediate fluctuated to trade below US$94 after rising more than 6 per cent since Oct 8. 

Saudi Arabia intercepted more missiles and drones launched by Yemen’s Houthis on Tuesday (Oct 13), as fighting with the Iran-backed militant group showed few signs of subsiding. Market participants are monitoring whether the violence will imperil shipments from the region’s largest oil exporter.

Meanwhile, Iranian attacks on ships crossing the Strait of Hormuz have surged, potentially threatening the recent recovery in Persian Gulf oil exports. Crude is up more than 70 per cent in 2026 so far on Middle East supply disruptions, while oil products, such as diesel, have swelled even more.

In an effort to tamp down soaring prices, US President Donald Trump in recent days announced a controversial deal for Russian diesel as well as an energy ceasefire between Moscow and Kyiv.

That accord appeared to come as a surprise to the leaders of both countries and Trump acknowledged on Monday that neither side had actually committed to stop attacks on the other’s energy infratructure.

“The prospect for increased Russian diesel is limiting today’s move, but there is skepticism over that deal,” said Mark Hackett, chief strategist at Nationwide Funds Group.

Meanwhile, Russia is again shipping less crude, as operations at its key Black Sea port slowed again amid rising security fears in the area.

“It’s been a dizzying few days of headlines,” with the Saudi attacks and Trump’s claims of an energy ceasefire stoking market volatility, said Scott Shelton, an energy specialist at TP ICAP Group. “We are off to a messy start this week.” 

SEE ALSO

Nasdaq ends down as chipmakers fall and bank earnings roll in

Chip sell-off pulls European stocks back from one-week high

A Houthi assault on Riyadh’s main airport over the weekend killed at least 16 people, including a US citizen, and wounded about 300. Trump has said he would consider joining Saudi-backed strikes against the Yemen-based group.

Meanwhile, Saudi Arabia is seeking to bolster its ability to ship oil without having to transit the Strait of Hormuz.

Saudi Aramco could add 1.2 million barrels a day of export capacity within seven to eight weeks by repurposing existing gas pipelines, Energy Minister Prince Abdulaziz bin Salman said on Monday. The country also plans to expand its total pipeline capacity bypassing Hormuz.

Despite persistent attacks in the waterway, crude flows approached pre-war levels in recent weeks. Saudi Arabia has also managed to restore flows through a critical pipeline to the Red Sea after the link was targeted by drone attacks.

While crude output remains significantly below normal, it rebounded in September from the lowest in more than three decades, the kingdom reported to Opec. BLOOMBERG