Oil Prices Stabilize Amid Supply and Geopolitical Concerns

Oil prices showed minimal movement on Tuesday, stabilizing after earlier declines. Brent futures gained 26 cents, settling at $100.58 per barrel, while US West Texas Intermediate (WTI) crude rose one cent to $89.44. The market balanced concerns over Middle Eastern supply disruptions with increased exports from the region. Vitol's CEO reported that around 12 million barrels per day of crude and 2 million barrels per day of refined products had recently left the Middle East on tankers.

Supply disruptions remained a key factor, with Saudi Arabia's airports in Jazan and Najran targeted in Houthi attacks. Meanwhile, Saudi Energy Minister Prince Abdulaziz bin Salman noted that oil pumped through the East-West Pipeline had reached 5.8 million barrels. The possibility of further disruptions limited price declines, as tensions between Saudi Arabia and Yemen's Houthis escalated.

In other developments, Ukraine's President Volodymyr Zelenskiy warned of a potential massive Russian attack, while the US National Hurricane Center indicated a 100% chance of a cyclone forming in the Gulf of Mexico. Such a storm could disrupt oil and natural gas production, further impacting prices.

The International Energy Agency is set to discuss details of a diesel stock release next week, aiming to address shortages and high prices. The Group of Seven agreed to release 100 million barrels of diesel and crude from emergency reserves. Meanwhile, the US Energy Information Administration projected a decline in global petroleum production and demand through 2026, with a rebound expected in 2027.