Brent crude was near $113 a barrel on October 23 after a 4% jump to a five-month high. Houthi attacks on Saudi Arabia and a Libyan pipeline shutdown raised supply concerns, and Indian stocks fell on oil worries.
Oil Steadies After a Sharp Jump
Oil prices were little changed in early Asian trade on Friday, October 23, after rising 4% to a five-month high in the previous session. Brent crude futures were down 21 cents, or 0.2%, at $112.96 a barrel as of 0030 GMT, according to Reuters. US West Texas Intermediate (WTI) crude was down 27 cents, or 0.3%, at $98.12.
The pause followed a sharp move on Thursday. Brent settled at its highest level since May 4 that day, driven by concern that energy supplies could be disrupted further after Houthi attacks on Saudi Arabia, the world’s top oil exporter.
| Benchmark | Early Friday Price | Change |
| Brent crude futures | $112.96 a barrel | Down 21 cents (0.2%) |
| WTI crude | $98.12 a barrel | Down 27 cents (0.3%) |
What Is Behind the Supply Worries
The main trigger is the fighting between Saudi Arabia and the Yemen-based Houthis. Saudi Aramco ordered the evacuation of its headquarters in Dhahran on Thursday as the fighting intensified, according to Reuters. Reports said the Houthis were pushing toward Bab el-Mandeb, a shipping chokepoint at the mouth of the Red Sea.
A second source of concern came from Libya. A pipeline valve linking the Hamada and Tahara oilfields to Zawiya port was shut, which reduced production at both fields, the head of Libya’s National Oil Corporation said.
Together, the two developments added to a market already worried about supply. Oil markets react quickly to threats near major producers and shipping routes, because even the risk of disruption can lift prices before any barrels are lost.
The Weekly Picture for Brent and WTI
The weekly numbers show a split between the two benchmarks. Brent, which settled at its highest since May 4 on Thursday, was set to close higher for a third successive week. WTI, by contrast, was on track to finish lower after two weeks of gains.
- Brent crude: headed for a third straight weekly gain
- WTI crude: set to end two weeks of gains with a weekly decline
- Thursday’s move: a 4% rise to a five-month high
The gap between the two is visible in the price levels as well. Brent at about $113 a barrel sits roughly $15 above WTI at $98.12, a gap that shows how differently the two benchmarks are trading this week. Brent is the international benchmark used to price much of the world’s crude, while WTI is the main US benchmark, so the two do not always move in step.
How Higher Crude Hit Indian Stocks
Indian markets felt the pressure on Thursday, October 22. The Nifty fell 0.54%, or 123.70 points, to close at 22,687.65, while the Sensex fell 460.30 points, or 0.62%, to 73,249.39. Both benchmarks extended their losses for a third straight session, and Business Standard reported that oil-sensitive stocks dragged the market as Brent climbed above $112 a barrel.
Market breadth was weak. According to 5paisa’s post-market update, 426 stocks hit 52-week lows on the day. The Nifty did not trade above Wednesday’s close at any point on Thursday, Business Standard reported.
India is a large importer of crude oil, so a rise in global prices tends to matter for the economy and for companies whose costs depend on fuel. That is why oil moves are closely watched on Dalal Street, and why renewed tension in West Asia was cited as a reason for the market’s weakness.
Also Read: FPIs Sell ₹47,955 Crore of Indian Equities in First Half of October as IT Stocks Draw Inflows
What to Watch Next
Two things will shape the next few sessions for crude. The first is whether the fighting around Saudi Arabia’s energy facilities and the Red Sea chokepoint escalates or eases. The second is whether Libyan output recovers after the pipeline valve closure.
For Indian investors, the link runs through the Nifty and Sensex, which have now fallen for three consecutive sessions while Brent has moved higher. The daily closing levels and the Brent price are the figures to follow, since they show whether the pressure from crude is easing or building.
Crude oil prices can move sharply in either direction in short periods. The numbers here describe where prices stood on Friday morning and over the preceding week, and they are not a forecast of where they will go.
