Oil Prices Steady as West Asia Exports Rise and Saudi Aramco Cuts Prices

Oil prices stabilized on Tuesday, October 6, after a sharp decline the previous day. Brent crude, the global benchmark, was trading at $100.55 in early Asian trade, while West Texas Intermediate (WTI) hovered above $89, with the November contract dipping 0.2% to $89.26. The market's calmer mood was attributed to increased exports from West Asia and a price cut by Saudi Aramco.

Supply concerns eased as Gulf producers ramped up oil shipments through the Strait of Hormuz, despite ongoing risks. Kuwait reported pumping about 75% of its pre-war output, and Iraq sought additional tankers to transport its cargoes. Saudi Aramco further pressured prices by cutting the price of its flagship Arab Light grade for Asian buyers to a six-year low, aiming to defend its market share.

Despite these developments, Brent crude remained approximately 65% higher for the year. Disruptions in supplies following the US and Israel attack on Iran in February had fueled inflation and tightened the market. While crude flows from West Asia have recovered, refined product shipments remain constrained due to Ukrainian strikes on Russian facilities.

In other news, Yemeni forces, backed by a Saudi-led coalition, captured the Red Sea port of Mocha from the Iran-backed Houthis. This advance came as part of a full-scale campaign to recapture all militia-held territory. The Houthis had controlled Mocha since early September, using it to tighten their grip on the Bab Al Mandeb Strait, a crucial chokepoint for Saudi oil exports.