Brent Crude Nears $101 as Aramco Cuts Asian Oil Prices

Oil prices inched higher on Tuesday, with Brent crude futures rising 0.37% to $100.68 per barrel and U.S. West Texas Intermediate (WTI) crude futures gaining 0.28% to $89.68 per barrel. The gains came despite pressure from Saudi Aramco’s unexpected cut in November crude prices for Asian buyers, which unsettled the market and led to a six-year low. The company, however, raised prices slightly for buyers in northwest Europe and the Mediterranean.

The price reductions amplified concerns that high crude prices could weaken global demand, especially as tensions in the Middle East persist. Reports last week indicated Saudi Arabia was offering steep discounts on oil loaded from Oman to offset high freight costs, suggesting improved crude availability. Gulf producers have continued shipping larger volumes through the Strait of Hormuz, despite heightened risks, with Iraq seeking additional vessels and Kuwait operating at around 75% of pre-war production levels.

Investors are awaiting the U.S. Energy Information Administration’s Short-Term Energy Outlook for insights on U.S. oil demand, production, and broader market conditions. Crude prices had fallen sharply on Monday after signs of recovering Middle East oil exports, compounded by the Group of Seven’s pledge to increase global supplies by 100 million barrels, though the specifics remain unclear.

Shipping data showed Gulf oil exports returning to pre-war levels for half of September, aided by Saudi Arabia loading crude from both the Red Sea and the Gulf. Meanwhile, Saudi-backed Yemeni forces recaptured coastal areas near the Bab el-Mandeb Strait from Houthi fighters, raising hopes for improved shipping and oil flows. The Houthis retaliated by attacking Saudi targets, including an Aramco refinery in Riyadh, intensifying geopolitical risks for global oil markets.