Prices climb on supply worries
Oil prices rose to near two-week highs on Monday as attacks on Saudi Arabia outweighed the prospect of extra supply after President Donald Trump welcomed fresh Russian diesel exports and a claimed Russia-Ukraine energy ceasefire. Crude oil traded at about $93 a barrel, up roughly 1.3% on the day, after reports of an attack on a Saudi airport pushed prices up nearly $2.
Even with the rise, crude is down about 8% over the past month, though it remains some 56% higher than a year ago. Traders are weighing two opposing forces: disruption risk in the Middle East, which lifts prices, and the promise of more Russian diesel on world markets, which pulls them down.
Diesel deal draws political fire
Trump said on social media that Russia would immediately supply more than 300,000 tonnes of diesel to the United States and global markets, followed by an additional 500,000 tonnes in November and 1 million tonnes "immediately thereafter." He said a further 3 million tonnes would arrive within a short period after that.
A bipartisan group of six US senators called on the administration to "immediately reverse course," writing that the United States should not give Vladimir Putin a financial lifeline while Russia keeps killing Ukrainian civilians. The senators said the administration had not consulted Congress or explained the decision as required by statute. Ukrainian and European officials voiced similar dismay.
Markets and consumers under pressure
US stock indexes were mixed, with technology shares slipping as investors waited for earnings and economic data. The Nasdaq fell ahead of the reports, while energy shares found support from higher crude. The fuel squeeze is feeding through to households: a gauge of US consumer sentiment fell sharply in October, near a record low, as families cited inflation and energy costs tied to Middle East conflict. Mortgage rates have also climbed, with the average 30-year fixed rate rising for a seventh straight week to 7.4%, according to Freddie Mac data, adding pressure on homebuyers.