Brent Crude Tops $106 as Supply Doubts Grow Amid Middle East Conflict
· Business · CNBC, Bloomberg, Hindustan Times
International benchmark Brent crude futures for December delivery rose to $106.17 a barrel, while U.S. West Texas Intermediate futures for November ticked 0.54% higher to $92.76 per barrel. Prices reversed initial losses after U.S. President Donald Trump declared an energy ceasefire between Russia and Ukraine and stated that Moscow will supply more than 4 million tons of diesel to the global market. However, market uncertainty persisted as Ukrainian President Volodymyr Zelenskyy warned that Moscow must formally commit to the ceasefire. Additional upward pressure on prices stems from Hurricane Isaias reaching Category 3 with 120mph winds, which forced U.S. energy producers to curtail offshore output along the Gulf Coast. Meanwhile, recent Houthi missile strikes on Riyadh airport that killed 12 people and injured over 300 have further elevated Middle East risk premia.
Why it matters
Rising global crude prices directly impact import-dependent economies like India by increasing fuel costs and stoking domestic inflation. Geopolitical escalations in the Middle East and weather disruptions in U.S. energy corridors threaten to maintain high volatility in energy markets.
Read the original report — CNBC
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