Business · 2026-10-26 · Morning briefing

Oil prices retreat as demand fears outweigh Saudi supply risks

Oil prices fell on Monday, with U.S. West Texas Intermediate crude sliding 2.19% to $101 a barrel and Brent crude declining 1.89% to $114.51. The drop came as traders weighed the risk of further supply disruptions from attacks on Saudi Arabia against concerns that elevated prices could begin to erode global demand.

The pullback followed a rally on Friday, prompted by attacks on Saudi energy infrastructure by Yemen’s Houthi militants. Tensions continued over the weekend with strikes targeting Riyadh's main airport and oil facilities, though Saudi authorities reported intercepting missiles and drones. Separately, the U.S. Energy Department authorised a release of 400,000 barrels from its Strategic Petroleum Reserve to address a disruption at a Louisiana refinery.

One investment officer, Michael Alfaro of Gallo Partners, estimates that geopolitical uncertainty has already added a risk premium of roughly $20 to a barrel of oil. Meanwhile, in a move to secure its Asian supply chain against future volatility, Saudi Arabia announced plans to begin storing crude oil in Singapore from the second half of 2027.

Summary written by Cup of News with AI from the sources below. Check the originals for the full story.

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• Crude Oil Prices Retreat as Supply Fears Ease
• Oil eases as markets assess potential waiver on Russian energy, Middle East supply risks
• Houthi attacks on Saudi airports push oil past $106, overshadowing Trump’s Russian diesel deal
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