Oil prices fell after surging last week but still held near six-month highs, amid hopes of easing hostilities between the United States and Iran, although persistent attacks on key producer Saudi Arabia kept investors wary.
Brent crude futures were down $1.90, or 1.63%, at $114.82 by 0959 GMT. US West Texas Intermediate crude futures were down $2.08, or 2%, at $101.19 per barrel.On Friday, prices settled nearly $3 higher. Brent finished the week up 6% and WTI ended 2.3% higher.
Thr drop comes as talks among Mecca pact states and Iranian officials in Tehran kick off as part of efforts to de-escalate Middle East tensions amid the threat of renewed war between the United States and Iran.
Previously, Brent crude fell 1.7 percent after Qatari mediators traveled to Tehran on Sunday as part of efforts to ease regional turmoil, although prices remained above the psychologically important $100-per-barrel level.
Meanwhile, officials hint a major development in maintaining its oil supply chain. Saudi Energy ministry and Singapore in a joint statement the said state-owned oil company Saudi Aramco will start storing crude oil in Singapore from the second half of 2027, to shore up the resilience of Aramco’s supply chain in the region.
“Today, Saudi Arabia and Singapore are announcing our joint intent to establish an arrangement for Saudi crude oil to be stored at the Jurong Rock Caverns from the second half of 2027,” the minister said. Saudi Aramco, the Energy Market Authority and JTC signed a memorandum of understanding to finalize the storage agreement.
Reports of the oi spill in UAE spreading further have emerged. Satellite images show the oil spill approaching the Emirate’s northern Umm Al Quwain shores. Efforts are underway to contain the leakage, the UAE’s Environment Ministry said on Friday but didn’t say what caused the spill.
The Saudi-led coalition battling Yemen’s Houthi rebels says it degraded their ability to strike targets inside the kingdom after destroying tunnels used to store ballistic missiles and launchers.
Spokesperson Major-General Turki al-Malki said in a post attacks also aim to cut off the Houthis’ supply lines between areas under their control and targeted rebel fortifications and military equipment along the front lines inside Yemen.