GLOBAL crude benchmarks declined following signs of recovering Middle East supply lines, as JPMorgan data indicated crude shipments through regional chokepoints have rebounded to 98 per cent of pre-war levels alongside a strengthening US dollar.
Crude futures softened with West Texas Intermediate trading near US$89 per barrel and Brent crude settling nearUS$100 per barrel on Tuesday.
The market easing follows confirmation that Middle East crude exports reached 17.5 million barrels per day. Refined product flows, including diesel and gasoline, recovered to 3 million barrels per day, representing 58 per cent of pre-war volume.
Gulf oil producers continue to navigate heightened maritime security risks to move crude through the Strait of Hormuz. Iraq is actively seeking additional tanker chartering capacity to maintain maritime output, while Kuwait confirmed its crude production has restored to approximately 75 per cent of pre-conflict levels.
Signalling growing physical supply availability, Saudi Aramco instituted sharp price cuts for its flagship Arab Light crude grade bound for Asian buyers in November. Energy markets remain focused on the upcoming US Energy Information Administration Short-Term Energy Outlook for further supply-demand projections.
Concurrently, the US Dollar Index (DXY) climbed to 102.5, reaching its highest level since April 2025, driven by a weakening euro amid political uncertainty in Spain and fiscal instability in France.
The US dollar gained despite softer economic indicators, including September US non-farm payrolls showing an addition of 29,000 jobs against expected forecasts of 90,000, alongside an elevated unemployment rate of 4.2 per cent.
Financial markets are pricing in an 80 per cent probability that the Federal Reserve will hold interest rates unchanged at its upcoming meeting.
In foreign exchange markets, the USD/MYR currency pair adjusted to 4.0920, reflecting broader greenback movements against regional currencies. - October 6, 2026
