Oil Prices Are Stuck at $105 as Geopolitical Risks Mount

Key Points:

• Brent crude oil prices remain steady near $105 per barrel amid ongoing geopolitical tensions, including Iranian drone attacks in the Strait of Hormuz and conflicts involving the US, Iran, Russia, Ukraine, Saudi Arabia, and Yemen’s Houthis.
• Houthi drone strikes severely damaged Saudi Aramco’s Dhahran headquarters, raising concerns over the security of critical Saudi energy infrastructure as the militia threatens further attacks on oil facilities and airports.
• The International Energy Agency warns of a prolonged global diesel shortage extending into 2027, driven by a significant year-on-year decline in diesel production and persistent supply constraints.
• China’s refined product exports surged to a four-year high in September but have sharply declined in October following tighter export controls, reflecting shifting domestic policy and market dynamics.
• US President Trump announced plans for extensive resource exploration in Greenland despite existing bans and security agreements limiting drilling rights, while the US also considers easing sanctions on certain vessels linked to Russia’s shadow fleet to facilitate oil transport.