RISING risks to global oil supplies pushed Brent crude above US$102 a barrel on Monday, with the threat of further disruption in key Middle East shipping routes compounded by OPEC+’s decision to keep production quotas unchanged next month.
The renewed surge in oil prices comes as Saudi-backed forces in Yemen launch a full-scale military operation against the Iran-backed Houthis, who have seized control of the Bab el-Mandeb, a strategic chokepoint linking the Red Sea and Gulf of Aden.
The development has heightened concerns over the movement of oil through one of the world’s key maritime routes, adding to supply disruptions already stemming from the wider Middle East conflict.
OPEC+ members agreed over the weekend to leave production quotas unchanged next month, despite crude prices moving back towards the US$100-a-barrel mark and diesel prices reaching record highs at the pump.
The decision means the market will have to contend with existing supply disruptions without an additional increase in OPEC+ output, while governments grapple with the impact of higher energy costs.
G7 nations have moved to release emergency oil reserves amid the continuing conflict, underscoring growing concern over the potential economic impact of prolonged supply disruptions.
Meanwhile, the US dollar remained firm, with the Dollar Index at 101.968 on Monday, up 0.04 per cent from the previous session and 2.82 per cent over the past month.
Against the ringgit, the US dollar traded at 4.0840, down marginally by 0.02 per cent from the previous session.
However, the ringgit has weakened 0.94 per cent against the US dollar over the past month, although it remains 3.11 per cent stronger than a year ago.
For Malaysia, sustained oil prices above US$100 could increase fuel and import-cost pressures, while a weaker ringgit against the US dollar could add to the cost of dollar-denominated energy imports.
The combination could complicate efforts to contain domestic cost pressures if the Middle East conflict continues to disrupt global energy supplies. - October 5, 2026
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