Brent crude nears $120 as escalating tensions between Saudi Arabia and the Houthis fuel another weekly rise in oil prices, putting fresh pressure on Trump.
Friday October 23, 2026
The slow rise in oil prices towards the $120 per barrel mark poses a nightmare scenario for US President Trump, even though crude oil markets have barely changed fundamentally. A slight decline in freight rates and a general flattening of retrograde curves reduced spreads for most grades globally, offsetting some of the pressures from higher crude benchmarks. Regardless, the escalating conflict between Saudi Arabia and the Houthis paved the way for another 4% weekly gain, with ICE Brent trading around $117 per barrel.
The first Russian diesel cargo ship is heading to New York. An unsanctioned tanker, the Maltese-flagged Agioi Fanendes, left the Russian Baltic Sea port of Primorsk with New York as its destination, marking the first cargo of diesel under the deal between Trump and Moscow, with final delivery scheduled for November 7.
Libya’s oil production falls after resurgence of protests. Libya’s NOC said unauthorized individuals closed a pipeline valve serving the Hamada and Tahara fields, reducing production by 50,000 and 40,000 b/d respectively, as recurring protests jeopardized crude production that provides 90% of state revenue.
Europe enters winter with gas levels at their highest level in four years. Europe’s TTF gas benchmark rose above €93/MWh ($30 per MMBtu), the highest since December 2022, as tight LNG supply from Qatar coincided with colder weather and storage peaking below 75%, leaving Europe highly exposed ahead of winter.
Aramco evacuates its headquarters after Houthi attacks. Saudi Aramco (TADAWUL:2222) ordered its staff to evacuate its Dhahran headquarters and temporarily work from home after the headquarters was attacked by the Houthis, the first such measure since the start of the war in Iran, with drone strikes also killing two people at the Shaybah oil field.
Qatar is seeking to rebuild its LNG supply base. QatarEnergy is seeking additional long-term cargoes from the United States and potentially Asia after striking its first deal with US developer Cheniere (NYSE: LNG), locking in 4 million tonnes of LNG per year until 2054, while domestic LNG outflows remain limited.
Trump taps emergency diesel stockpiles. The U.S. Department of Energy is offering 315,000 barrels of diesel, or a third of its reserves in the Northeast, to ease regional disruptions from declining global diesel exports, while presenting the loan as temporary relief, with the first Russian shipments arriving in early November.
Japan plans to phase out gasoline subsidies. Japan’s government plans to gradually reduce gasoline subsidies starting in December as the program costs billions of dollars a month, quickly depleting a $20 billion budget as average prices could rise from $4.1 a gallon today to $4.35 a gallon in January.
Trump considers wind turbines a security threat. U.S. President Trump said wind turbines and their imported components pose a threat to national security due to cybersecurity concerns and foreign dependence, citing a Commerce Department investigation and ordering trade officials to discuss the issue with trading partners.
Indonesia plans to stop gas exports. Indonesia could suspend pipeline gas exports to neighboring countries as Jakarta seeks to prioritize increasing domestic demand, which could be a blow to Singapore as such a move would cut off some 7 billion cubic meters of supply, equivalent to 45% of the city-state’s consumption.
Mexico is doubling its efforts in oil exploration. Mexico’s national oil company Pemex has pledged to spend $99 billion on its upstream activities between 2025 and 2030, or 80% of its entire capital budget, in a bid to counter falling production as crude oil output hovers at a paltry 1.34 million b/d in 2026 to date.
Kashagan arbitration court rejects $12 billion claims. The Permanent Court of Arbitration in The Hague has rejected the Kazakh government’s claims for $12 billion in costs against international oil majors operating the giant Kashagan field, saying it was too late to claim costs incurred between 2011 and 2015.
The EU starts working on the 22ndnd Sanctions package against Russia. The EU’s proposed 22nd sanctions package would add 12 individuals and 105 entities linked to Russian oil production, trade, refining, transportation and logistics, doubling the pressure as Washington and Moscow discuss broader bilateral economic issues.
Oil spill in United Arab Emirates threatens civilian infrastructure. United Arab Emirates AAuthorities closed coastal areas around Umm Al Quwain and launched containment operations after an oil tanker – the Gem No.2 VLCC hit by missiles two weeks ago – began leaking oil, with currents carrying contamination to desalination plants.
Beijing orders a nationwide increase in oil supplies. The Chinese government has asked state oil companies PetroChina, Sinopec and CNOOC to accelerate oil exploration and production to protect the country from supply shocks, surpassing the annual growth rate of 2%, with current oil production at 4.43 million bpd.
U.S. Gasoline Glut Challenges Global Rally. Henry Hub gas futures fell to a two-month low of $2.66 per MMBtu as mild weather, recovering offshore supply and above-average US inventories outpace record LNG demand, with calendar year 2027 futures falling to a 5-year low of $3.09 per MMBtu.
By Tom Kool for Oilprice.com
More important reading on Oilprice.com
Gn bussni
