FX.co ★ Crude Oil Eases Toward $100

Crude oil prices retreated toward the $100-per-barrel mark on Friday, pulling back from Tuesday’s four-month high of $106, as markets weighed the prospect of increased supply from the Middle East. US President Trump signaled that Washington could resume military strikes against Iran after recent dialogue attempts among Tehran, the US, and GCC states failed to restore maritime oil exports.

At the same time, Saudi Arabia indicated that its East–West pipeline could return to service in the coming days, following a shutdown caused by attacks from Iran-aligned forces. The disruption halted the transfer of 7 million barrels per day to the Red Sea, a key alternative export route amid tanker blockades in the Persian Gulf.

The prolonged interruption of tanker traffic from the region has led several major OPEC producers to reduce output, with Saudi production recently falling to its lowest level since 1990. Declining oil inventories in China, the world’s largest importer, prompted higher purchase orders in August, while US Strategic Petroleum Reserve (SPR) levels remain near historic lows.