Brent Bounces Back to $108

Brent crude traded around $102 a barrel on Friday amid reports of additional US military deployments to the Middle East and China’s decision on Thursday to halt fuel exports this month. The US is reportedly sending a third aircraft carrier strike group to the region, along with an amphibious force carrying 2,000 Marines, raising concerns over a potential escalation in the months-long conflict. The deployment comes as US President Donald Trump has signaled an intention to resume strikes on Iran after the November midterm elections. Meanwhile, China’s major refiners have suspended most refined fuel exports for October. However, a strong rebound in oil flows from the Persian Gulf has largely offset upward price pressures. Middle Eastern crude exports have recovered close to prewar levels, although uncertainty over US-Iran negotiations continues to cloud the outlook. The G7 have agreed to release as much as 100 million barrels of diesel and crude stocks over the next four months.

Brent crude fell to around $101 a barrel on Friday, after the Group of Seven agreed to consider releasing up to 100 million barrels of emergency oil and diesel reserves to ease fuel costs. The coordinated release is expected to take place over four months, French President Emmanuel Macron said. Macron indicated that the initiative aims to bring down prices following pressure from the Trump administration to address tightening fuel markets. Meanwhile, Middle Eastern crude exports have recovered close to pre-war levels, although uncertainty surrounding US-Iran negotiations continues to cloud the outlook. The Strait of Hormuz remains a key concern, with reported tanker attacks underscoring persistent shipping risks and the US strengthening air defences around energy facilities in Saudi Arabia and Qatar.

Brent crude fell more than 3% to around $99 a barrel on Friday as European governments considered releasing strategic oil reserves to ease mounting fuel costs. EU members were reportedly discussing a French proposal to draw on crude and fuel stockpiles, amid growing pressure from Washington to address diesel shortages and avoid potential US export restrictions. Treasury Secretary Scott Bessent urged European partners to help stabilise supplies, which have been disrupted by turmoil in the Persian Gulf and Ukrainian attacks on Russian refineries. Meanwhile, Middle Eastern crude flows have approached pre-war levels, though uncertainty persists as Washington and Tehran remain far from a lasting agreement to reopen the Strait of Hormuz fully. Also, shipping risks remain elevated following reported tanker attacks, while the US has reportedly strengthened air defences protecting energy facilities in Saudi Arabia and Qatar.