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Brent reverses lower after Saudi supply and US Strategic Petroleum Reserve update
Deutsche Bank noted Saudi loadings resumed from Yanbu and the US planned a last Strategic Petroleum Reserve offer of up to 40 million barrels, coinciding with the move.
Deutsche Bank’s Jim Reid and team pointed to a sharp intraday reversal in Brent oil, with front-month prices falling while longer-dated contracts continued to rise.
According to the note, Saudi supply normalization weighed on spot Brent after headlines said Saudi Arabia resumed oil loadings from the port of Yanbu.
The team also cited a US announcement to offer up to 40 million barrels from its Strategic Petroleum Reserve as what it described as the final drawdown in the coordinated global release, which helped support an intraday turnaround.
Even with the pullback in near-term prices, investors appeared cautious, as longer-dated Brent futures continued climbing, including December 2027 futures hitting new highs.
Latest closeBrent $98.85 ▼5.2%