Solid Gold Berjangka – Brent crude prices weakened during Thursday’s trading (October 15) as a sell-off in global stock markets prompted investors to trim their exposure to riskier assets. Brent fell by approximately 2% to US$103.93 per barrel during morning trading in London, while West Texas Intermediate (WTI) for November delivery remained relatively stable at around US$94.96 per barrel.
This decline occurred despite persistent risks to energy supplies from the Middle East. The Iran-backed Houthi group has intensified attacks on Saudi Arabia throughout the month, while Iran has also expanded its targeting of vessels near the Strait of Hormuz. These conditions continue to threaten the smooth flow of oil exports from the Persian Gulf region.
According to analysts at Standard Chartered, the oil market is currently being dragged down by a broader "risk-off" sentiment. Nevertheless, the physical oil market remains tight, and the supply risks from the Middle East have not dissipated. A recent drop in shipping costs has also provided buyers with some relief, allowing them to acquire and transport oil at a lower expense.
Meanwhile, the United States is considering easing sanctions on vessels used to transport oil and energy products from Russia, Iran, and Venezuela. Such a move could increase the availability of tankers and exert downward pressure on global shipping costs. European diesel prices also saw a slight decline on Thursday, though they remain more than double the levels seen at the start of the year.
The oil market is also closely monitoring developments regarding U.S. inventories. The American Petroleum Institute (API) reported an 11.1 million-barrel drop in U.S. crude oil stocks over the week. Should this be confirmed by official data from the Energy Information Administration (EIA), it would mark the largest decline since June 2025 and could provide support for oil prices.